Branded convenience food products maker Campbell Soup Co. (CPB) is scheduled to report financial results for the fourth quarter before the market opens on Friday, with analysts expecting the company to report earnings per share that is flat with the year-ago quarter. However, slowing commodity inflation may help in the improvement of margins.
On average, 16 analysts polled by Thomson Reuters expect the company to earn $0.30 per share for the quarter, with estimates in the range of $0.28 to $0.33 per share. Quarterly revenues are expected to grow nearly 5% to $1.60 billion. Analysts' estimates typically exclude special items.
In the third quarter, Campbell's results were hurt by restructuring charges as well as a deferred tax expense related to the enactment of U.S. health care legislation in March 2010, which led to a 3.4% decline in profit,although earnings per share remained flat with last year.
Quarterly sales improved 7% year-over-year to $1.8 billion, driven by improved volume trends, particularly in ready-to-serve soups.
While reporting third-quarter results in May, the company projected fiscal 2010 adjusted net earnings per share growth at the high end of the 9% to 11% range from the fiscal 2009 adjusted base of $2.21, implying earnings of $2.45 per share. The Street is currently looking for full-year 2010 ernings of $2.46 per share.
In the first quarter of fiscal year 2011, Campbell Soup expects to benefit from the cool weather, when demand for soups will be higher. Analysts expect the company to report a wopping $0.92 per share in earnings for the first quarter.
Although the recession-imposed eat-at-home habit did help food products makers, Campbell had to face stiff competition from lower-priced private labels, forcing the company to look for revenue-generating as well as cost-cutting measures. The high-quality foods and simple meals-maker is tweaking its products lines to induce budget and health-conscious shoppers.
The company's new and improved healthy soups hit the supermarket shelves last month as projected by the company. In February, it revealed plans to enhance more than 60% of its flagship condensed soup line with product improvements, further expand its sodium reduction program, introduce more contemporary packaging, improve shelving systems and introduce new marketing aimed at the simple meals category.
"Importantly, our products used to prepare meals at home continued to resonate with consumers. Meal makers--which include condensed cooking soups, broth and sauces--are crucial to how we will compete and win in the simple meals category," President and CEO Douglas Conant stated while reporting third-quarter results.
The company also revealed in mid-July that it will step up investments to focus on three large and growing categories: healthy beverages, baked snacks and simple meals. Healthy beverages is also well positioned to capitalize on the health & wellness trend, with increasing number of people turning to beverages as a way to get more vegetables into their diets.
Among Campbell Soup's peers, the Pittsburgh, Pennsylvania-based ketchup, sauces and soup maker H. J. Heinz Co. (HNZ) reported Wednesday that strength in the emerging Markets in Asia drove its first quarter profit 13% higher than last year, despite a slump in the US food-services business. Sales grew 1.6% to $2.48 billion from last year. The company also reaffirmed its fiscal 2011 outlook.
Another peer, San Francisco, California-based Del Monte Foods Co. (DLM) said Thursday that profit for the first quarter edged up from last year despite a 1.1% sales decline, helped by a 3.5% increase in pet food product sales. Del Monte also backed its earnings forecast for the full-year 2011.
CPB closed Thursday's regular trading session at $37.32, up $0.35 or 0.95% on a volume of 2.34 million shares, lower than the three-month average volume of 2.56 million shares. In the past 52-week period, the stock has been trading in a range of $30.63 to $37.59.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.