Campbell Soup beats by $0.02, beats on revs; lowers FY15 guidance on FX
Reports Q1 (Oct) adj. earnings of $0.74 per share, $0.02 better than the Capital IQ Consensus of $0.72; revenues rose 4.2% year/year to $2.25 bln vs the $2.22 bln consensus, driven by favorable volume and mix, partly offset by increased promotional spending and the negative impact of currency.
- Organic sales increased 5% with gains in four of the co's reportable segments.
- Excluding items impacting comparability in the prior year, adjusted gross margin declined 1.3 percentage points to 34.7 percent. The decrease in adjusted gross margin was due to cost inflation, higher supply chain costs and higher promotional spending, partly offset by productivity improvements, the benefit from lapping the prior-year Plum recall and favorable mix.
- "Based on headwinds from currency translation, we have reduced the low end of our guidance ranges. Importantly, our currency-neutral expectations have not changed."