Please ensure Javascript is enabled for purposes of website accessibility

Campbell Soup Fiscal Q2 Results Are M'm M'm Good!

By James Brumley - Mar 4, 2020 at 1:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The packaged food company's debt reduction work is starting to pay off.

Campbell Soup Company (CPB 1.06%) shares surged 7% on Wednesday following the release of its fiscal second-quarter numbers, reaching new 52-week highs as a result. The food giant topped revenue and earnings estimates for the three month stretch ending in late January, and underscored those results with improved guidance for the remainder of the year.

Kid eating a bowl of soup in a kitchen

Image source: Getty Images.

The report was good news for shareholders who saw Campbell Soup -- along with other packaged food names -- run into a headwind beginning in 2016. Most, including Campbell's, have been reshaping their operations to achieve better efficiency and lower costs, but Campbell's may be doing so more effectively than others. The stock had already gained more than 50% between its early January 2019 lows and this January's highs. Shares were also somewhat shielded from the brunt of last week's coronavirus-driven sell-off, and they rebounded better than most on Monday of this week. The solid second-quarter report left the stock within easy reach of prices not seen since mid-2017.

For the three months ended January 2020, Campbell Soup Company reported income of $0.72 per share, up from $0.65 earned in the comparable quarter a year earlier, and topping analyst estimates of $0.66. Those same analysts were modeling sales of $2.15 billion, according to FactSet, versus the company's actual second quarter top line of $2.16 billion. Sales under generally accepted accounting principles (GAAP) were essentially flat year over year, though organic sales were up 1%.

A successful debt reduction effort also prompted the company to raise its 2020 adjusted EPS outlook to a range of $2.55 to $2.60. Both figures are a nickel higher than Campbell's most recent prior guidance.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Campbell Soup Company Stock Quote
Campbell Soup Company
$48.40 (1.06%) $0.51

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.