In its fiscal fourth-quarter earnings release Thursday, Campbell Soup Co. (NYSE:CPB) reported 35% better profits, but warned that its first-quarter and 2004 earnings may fall short of expectations.

The company's been trying to turn around its fortunes for a while, and it's a little disconcerting to see an earnings release with a case of good news and bad news.

At one time, the company's distinctive red-and-white canned soups reigned supreme as true convenience food. Campbell's tomato soup and a grilled cheese on a rainy day used to be Mom's quick fix for any ill, and many adults still take that classic prescription every once in a while.

However, changing times have meant changing ideas of convenience food. But Campbell has risen to the challenge, creating new products it markets under the "M'm! M'm! Good! To Go!" tagline. A fine example is its "Soup at Hand" sippable soups (gee, no spoon needed! Look, Ma, no hands!).

It seems its ready-to-serve soups need continue to gain in popularity to help position the company for solid growth. In its release, Campbell said this product segment increased 8% in 2003; overall, the soup category gained 3%. Sales of its condensed soups declined 6%, which is enough to make one wonder if maybe the old-school condensed soup line may be losing clout with consumer tastes.

When reviewing 2003, it was actually its biscuits and confectionery sector, which includes Pepperidge Farm, that racked up an 18% increase in revenues.

You may not realize it, but Campbell's got many other strong brands you might not have expected, including Pace, Franco American, Swanson's, Godiva, and Prego.

Of course, Campbell operates in a very competitive space. Rivals include General Mills (NYSE:GIS), with Progresso, Old El Paso, and Pillsbury brands; H.J. Heinz Co. (NYSE:HNZ), with its Classico and Wyler's brands; Kraft Foods (NYSE:KFT), which owns Nabisco; and Kellogg (NYSE:K), which distributes Keebler.

Campbell deserves credit for the last year; it has been making inroads in modernizing its wares, as discussed back in May. The stock also pays a quarterly dividend. (If hearing the word "dividend" makes your eyes light up, you might want to consider the Fool's Income Investor newsletter.)

Campbell has been whipping up a recipe for renewed success. If it can continue to ramp up popularity of its convenience soups, it seems that, despite some bumps in the road, it will indeed be good to go.

Alyce Lomax can be reached via email at [email protected] .