The 10-second takeaway
For the quarter ended Oct. 28 (Q1), Campbell Soup met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted.
Margins dropped across the board.
Campbell Soup reported revenue of $2.34 billion. The 14 analysts polled by S&P Capital IQ expected sales of $2.37 billion on the same basis. GAAP reported sales were 8.1% higher than the prior-year quarter's $2.16 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.88. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.85 per share. GAAP EPS of $0.78 for Q1 were 4.9% lower than the prior-year quarter's $0.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.0%, 250 basis points worse than the prior-year quarter. Operating margin was 17.4%, 80 basis points worse than the prior-year quarter. Net margin was 10.5%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.33 billion. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $8.53 billion. The average EPS estimate is $2.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 499 members out of 559 rating the stock outperform, and 60 members rating it underperform. Among 168 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 159 give Campbell Soup a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Campbell Soup is hold, with an average price target of $34.93.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Campbell Soup. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Campbell Soup to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.