Campbell Soup Beats Analyst Estimates on EPS

Campbell Soup (NYSE: CPB  ) reported earnings on Feb. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 27 (Q2), Campbell Soup met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank.

Margins contracted across the board.

Revenue details
Campbell Soup reported revenue of $2.33 billion. The 14 analysts polled by S&P Capital IQ expected to see revenue of $2.32 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $2.11 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.70. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share. GAAP EPS of $0.60 for Q2 were 6.3% lower than the prior-year quarter's $0.64 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.1%, 330 basis points worse than the prior-year quarter. Operating margin was 13.2%, 180 basis points worse than the prior-year quarter. Net margin was 8.1%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.03 billion. On the bottom line, the average EPS estimate is $0.57.

Next year's average estimate for revenue is $8.51 billion. The average EPS estimate is $2.54.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 497 members out of 557 rating the stock outperform, and 60 members rating it underperform. Among 189 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 178 give Campbell Soup a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Campbell Soup is hold, with an average price target of $35.80.

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