Campbell Soup (CPB) Earning Results 2020 Q4

The history of Campbell Soup Company (NYSE:CPB) dates back to 1869 when fruit merchant Joseph Campbell and canning factory owner Abraham Anderson joined hands to form a business. Their company initially produced canned vegetables, jellies, mincemeat, among other canned products. Nobody knew back then that a company with such humble beginnings would one day become a leading processed food and snack company.

Campbell currently produces a wide range of high-quality soups, meals, beverages, and snacks. The demand for its products remained elevated for the most part of 2020, as an increasing number of people started eating at home following the Covid-19 pandemic. However, the sales boost was not reflected in the company’s share price. CPB stock did not gain any value in 2020.

The company on Wednesday announced mixed financial results for the second quarter. It reported earnings of 80 cents per share for the three months ended January 31, above 56 cents per share in the comparable period of 2020. The adjusted profit of 84 cents per share matched the consensus forecast.

Revenue advanced 5 percent on a year-over-year basis to $2.279 billion, but slightly shy of $2.302 billion projected by analysts.

Speaking on the results, CEO Mark Clouse said in a statement, “We delivered another quarter of strong results, with top-line growth in both segments—partly tempered by foodservice and supply constraints caused by COVID-19—as well as continued growth in EBIT and EPS.”

Looking forward, Campbell expects adjusted profit in the range of $3.03 per share to $3.11 per share for fiscal 2021, almost in the line with analysts’ average estimate of $3.03 per share. However, the company projected sales decline between 3.5 percent to 2.5 percent for the year, higher than a drop of 2.7 percent suggested by analysts.

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