As for earnings, the adjusted EBIT is up 23% YOY, the GAAP EPS up 32%, and the adjusted EPS is up 37% and beat the consensus by a dime. The 50 basis point decline in GAAP margin is offset by a 90 basis point improvement in the adjusted margin that drove solid improvement on the bottom line. The company reported margin compression despite the efforts to mitigate it but far less than anticipated. On a consumption basis, including inventory levels, sales are up 4% for the year and 14% versus the pre-pandemic comp. Volume fell by 3% versus last year’s pandemically boosted comp, while pricing increased by 11%. On an organic basis, sales from continuing operations increased by 9%, with pricing offsetting a decline in volume. The revenue beat the consensus by $0.090 billion or 400 basis points on strength in all segments. The company brought in $2.31 billion in net revenue for a gain of 7.6% over last year despite divestitures made during the period. The Campbell Soup Company results show the company outperformed on all levels.
While the operating environment remains challenging and we continue to expect significant inflation (our emphasis), our team is executing well, and Campbell is on a much stronger foundation today,” Campbell Soup Company Has Tasty Quarter “Our improved supply chain execution along with inflation-driven pricing began to mitigate the margin pressure we have experienced over the last 12 months. High-fliers like Hormel, Clorox (NYSE: CLX), and McCormick (NYSE: MKC) trade at much higher valuations of 24X, 25X, and 28X while paying much lower dividends. In the case of Campbell Soup Company, the low 17X earnings that it trades for and the high 3.15% dividend that it pays will help it outperform others in the Consumer Staples sector. What this means for investors is the outlook for earnings is going to hold steady or even improve in the face of a decline among average S&P 500 companies. The key takeaway from the report is that inflation is still rising, but the company has been able to mitigate the impact. The Q3 report from Campbell Soup Company (NYSE: CPB) is a good reason why the Consumer Staples Stocks will outperform over the next 12 to 24 months.
0 kommentar(er)
