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Campbell Soup Cuts 2017 Sales Outlook, But Raises Adj. EBIT And Adj. EPS View

Campbell Soup Co. (CPB) said that it lowered its fiscal year 2017 sales outlook by one percentage point, while it raised annual expectations for adjusted EBIT and adjusted earnings per share.

Denise Morrison, Campbell's President and Chief Executive Officer, said, "We are adjusting our fiscal 2017 guidance, reflecting our performance in the quarter, the difficult operating environment and our outlook for the remainder of the year. We lowered our sales outlook by one percentage point to a range of -1 to 0 percent. We raised our expectations for adjusted EBIT and adjusted EPS, increasing the low end of both ranges to 2 to 4 percent and 3 to 5 percent, respectively. Despite the challenges on the top line, we expect that we will be able to offset the impact of lower sales with our ongoing cost-savings efforts, which are ahead of our expectations for the fiscal year."

For 2017, Campbell now expects sales to change by negative 1 percent to 0 percent. Previously, it was expected flat to 1 percent growth. It expects 2017 adjusted EBIT to increase by 2 to 4 percent, compared to prior outlook 1 percent to 4 percent growth.

It projects adjusted EPS for 2017 to increase by 3 to 5 percent or $3.04 to $3.09 per share, compared to the previous outlook of 2 to 5 percent growth. The latest-guidance assumes the impact from currency translation will be nominal. Analysts polled by Thomson Reuters expect the company to report earnings of $3.06 per share for 2017. Analysts' estimates typically exclude special items.

by RTT Staff Writer

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