The 10-second takeaway
For the quarter ended April 28 (Q3), Campbell Soup beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share grew.
Margins dropped across the board.
Campbell Soup reported revenue of $2.09 billion. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $2.05 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.82 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 $0.62. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.56 per share. Non-GAAP EPS of $0.62 for Q3 were 11% higher than the prior-year quarter's $0.56 per share. GAAP EPS of $0.57 for Q3 were 3.6% higher than the prior-year quarter's $0.55 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 35.7%, 310 basis points worse than the prior-year quarter. Operating margin was 13.0%, 170 basis points worse than the prior-year quarter. Net margin was 8.6%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.83 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $8.54 billion. The average EPS estimate is $2.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 495 members out of 549 rating the stock outperform, and 54 members rating it underperform. Among 186 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 175 give Campbell Soup a green thumbs-up, and 11 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 $40.86.
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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 position in any of the stocks mentioned. 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.