Campbell Soup Co. CPB, +1.52% shares rose 4.7% in Wednesday premarket trading after it reported fiscal third-quarter earnings that beat expectations and raised full-year sales guidance.
The food company posted net income totaling $188 million, or 62 cents per share, up from $160 million, or 54 cents per share, last year. Adjusted EPS of 70 cents beat the FactSet consensus for 61 cents. Sales of $2.130 billion were up from $1.984 billion and ahead of the FactSet consensus for $2.042 billion. “Our improved supply chain execution along with inflation-driven pricing began to mitigate the margin pressure we have experienced over the last 12 months,” said Chief Executive Mark Clouse in a statement. For the year, Campbell’s now expects sales to be flat to up 1% versus previous guidance for flat to down 2%. Organic net sales are now expected to grow 1% to 2%, up from previous guidance for down 1% to up 1%. The FactSet consensus is for sales of $8.411 billion, implying a 0.8% decline. Campbell’s still expects adjusted EPS of $2.75 to $2.85. The FactSet consensus is for $2.78. Campbell’s stock has gained 7.2% for the year to date while the S&P 500 index SPX, -1.08% is down 12.7% for the period.