Here’s Why Campbell Soup’s Profits Spilled
A weak soup market and higher promotion costs caused Campbell Soup’s (NYSE:CPB) first-quarter profit to plunge over 5 percent, though it still beat analysts’ estimates.
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Net earnings were $177 million (55 cents a share) compared to $187 million (57 cents a share) in the previous year. However, excluding items, earnings were 56 cents a share, ahead of analysts’ estimates of 52 cents a share.
Sales were 0.4 percent higher at $1.8 billion and bore the brunt of a weak U.S. soup market that saw sales falling 3 percent.
The company faces competition from rivals Kraft (NYSE:KFT) and H.J.Heinz (NYSE:HNZ). For the full year, Campbell forecasts earnings at the top of the range of $2.34 to $2.42, while analysts estimate $2.38 a share.
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