Campbell Soup reaffirms FY14 guidance; co expects growth of ~3% in net sales, which equates to ~$8.29 bln vs $8.29 bln Capital IQ Consensus Est, expects EPS is expected to grow at the low end of $2.53 to $2.58 vs $2.53 consensus
Key drivers for FY15
- Campbell plans to provide FY15 guidance when it reports fourth-quarter results on Sept. 8, 2014.
- Looking ahead to FY15, Campbell expects organic sales to increase, reflecting improvements in its key categories, continued growth from its innovation platforms, progress in its U.S. Beverages and Australian businesses and the contribution from recent acquisitions.
- Campbell also expects its gross margin percentage to be comparable to FY14. Absent further acquisitions, the company anticipates it will resume strategic share repurchases next fiscal year.
- Campbell suspended its strategic share repurchase program following the Bolthouse Farms acquisition in 2012.
- Campbell reiterated its long-term targets of 3-4% organic sales growth, 4-6% adjusted EBIT growth and 5-7% adjusted EPS growth.
- While Campbell expects an improvement in its organic sales performance for the coming year, the co's FY015 performance is expected to be below these long-term targets.
- The co indicated that it may need to continue reshaping its portfolio to achieve these long-term goals.