Campbell Soup Co. (NYSE: CPB) reported its financial results for the fiscal first quarter on Wednesday that topped analysts’ estimates for earnings and revenue. Despite better-than-expected performance in Q1, the U.S. company’s guidance missed Wall Street expectations on Wednesday.
Campbell Soup was reported less than 1% down in premarket trading on Wednesday. Shares of the company are currently exchanging hands at £35.65 that almost matches the per-share price at which it started the year 2020.
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The stock had plummeted to as low as £30.76 per share in late March when the COVID-19 restrictions were the most stringent. Learn more about why do prices rise and fall in the stock market.
Campbell Soup’s Q1 financial results versus analysts’ estimates
Campbell Soup said that its net income printed at £229.52 million in the first quarter that translates to 76 pence per share. In comparison, its net income in the same quarter last year was capped at a much lower £123.30 million or 40.85 pence per share.
The processed foods and snacks company reported £1.74 billion of sales in the recent quarter versus the year-ago figure of £1.62 billion. According to FactSet, experts had forecast the company to post a slightly lower £1.72 billion of sales in Q1. Their estimate for per-share earnings was capped at 67.59 pence.
Campbell Soup attributed its hawkish performance in the recent quarter primarily to snacks that it said were very much in demand in recent months. Last week, Fitch affirmed the NYSE listed company’s long-term issuer default rating (IDR) at ‘BBB’.
Campbell declares 27.48 pence per share of quarterly dividend
The board declared 27.48 pence per share of quarterly dividend on Wednesday, up from 26 pence per share last year. For the fiscal second quarter, Campbell Soup now forecasts a 5% to 7% growth in sales. It expects its adjusted per-share earnings to fall in the range of 60.17 pence to 61.65 pence.
In comparison, analysts expect a 6.5% growth in its Q2 sales and 62.39 pence of adjusted earnings per share. The Camden-based company had also topped estimates in the fiscal fourth quarter, as per the report published in September.
Campbell Soup performed largely upbeat in the stock market last year with an annual gain of roughly 45%. At the time of writing, it is valued at £10.84 billion and has a price to earnings ratio of 24.78.
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