Campbell Soup Co. stock heats up after earnings report

CAMDEN - Campbell Soup Co. stock soared Wednesday as the firm reported progress in its turnaround effort.

The Camden firm's stock closed at $52.72 per share, up by $4.84 per share, or a little more than 10 percent, for the day.

The surge came after Campbell's top executive reported "high-quality" second quarter results were "in line with or exceeding our expectations."

President and CEO Mark Clouse also noted Campbell has increased its 2020 guidance for adjusted earnings per share, reflecting the expected benefits of lower corporate debt.

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Campbell cut its debt from $9.5 billion to $5.8 billion, primarily through the sale of its international operations and a money-losing fresh foods unit.

Clouse predicted lower interest costs also would allow the firm "to make important incremental investments" in its business over the second half of its fiscal year.

"We have more work to do to make this truly sustainable, but clearly seeing key elements of our business improve is encouraging," Clouse said in a conference call with investment analysts.

Clouse arrived at Campbell just over a year ago to lead an effort to revive the company's finances.

Campbell on Wednesday reported adjusted earnings before interest and taxes of $364 million for the three months ended Jan. 26. That was up 8 percent from the year-before period.

It said adjusted earnings per share rose 11 percent to 72 cents.

Adjusted results excluded items that would affect year-to-year comparisons.

Campbell's new guidance for 2020 calls for adjusted earnings of $2.55 to $2.65 per share. The guidance previously was $2.50 to $2.55 per share.

The firm reported net sales for the quarter of $2.16 billion, little changed from a year earlier.

Quarterly sales of $1.22 billion for meals and beverages included "marked improvement" for some soup lines and a "really strong performance" for Prego pasta sauces, Clouse said.

Campbell's snack unit, which includes Pepperidge Farm, Goldfish and Snyder's of Hanover, generated sales of $938 million. Eight of the division's top nine brands increased or maintained their market share, Clouse said.

Jim Walsh is a free-range reporter who’s been roaming around South Jersey for decades. His interests include crime, the courts, economic development and being first with breaking news. Reach him at jwalsh@gannettnj.com or look for him in traffic.

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