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LONDON, UK / ACCESSWIRE / June 9, 2017 / Pro-Trader Daily publishes post-earnings coverage on Campbell Soup Co. (NYSE: CPB) following the Company's release of its third quarter fiscal 2017 financial results on May 19, 2017. The maker of Pepperidge Farm snacks and V8 juices reported a y-o-y decline in sales and earnings. The Company also increased the lower-end of its EBIT and adjusted EPS forecast for FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at: http://protraderdaily.com/register/.

Get more of our free earnings reports coverage from other constituents of the Processed & Packaged Goods industry. Pro-TD has currently selected AdvancePierre Foods Holdings, Inc. (NYSE: APFH) for due-diligence and potential coverage as the Company reported on its financial results for Q1 2017 which ended on April 01, 2017. Register for a free membership today, and be among the early birds that get access to our report on AdvancePierre Foods when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CPB; also brushing on APFH. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the quarter ended April 30, 2017, Campbell Soup's sales dropped 1% to $1.85 billion compared to sales of $1.87 billion in Q3 FY16, driven by a 1% decline in organic sales, reflecting higher promotional spending, while volumes were comparable to the prior year. The Company's reported figures lagged behind analysts' consensus estimates of $1.87 billion.

For Q3 FY17, Campbell Soup's gross margin increased to 36.6% compared to gross margin of 35.3% in Q3 FY16. Excluding items impacting comparability in the prior year, the Company's adjusted gross margin decreased 0.4% from 37.0% in the prior year's same quarter to 36.6% in the reported quarter.

During Q3 FY17, Campbell Soup's marketing and selling expenses declined 8% on a y-o-y basis to $209 million. Excluding items impacting comparability in the prior year, the Company's adjusted marketing and selling expenses dropped 5%, attributable to lower advertising and consumer promotion expenses and the benefits from cost savings initiatives. Campbell Soup's EBIT increased 11% on a y-o-y basis to $298 million. Excluding items impacting comparability, the Company's adjusted EBIT decreased 2% to $305 million.

For Q3 FY17, Campbell Soup reported net income of $176 million, or $0.58 per share, compared to net income of $185 million, or $0.59 per share, in Q3 FY16. The reported quarter results reflected pre-tax charges related to cost savings initiatives of $7 million, or $0.01 per share. Excluding items impacting comparability, the Company's adjusted earnings declined 9% to $0.59 per share, compared with adjusted earnings of $0.65 per share in the year-ago same quarter and below Wall Street's forecasts of $0.64 per share.

Segment Results

During Q3 FY17, Campbell Soup's Americas Simple Meals and Beverages segment's sales declined 2% to $982 million driven by declines in soup and V8 beverages, partly offset by gains in Prego pasta sauces. Sales of US soup fell 4% on a y-o-y basis, driven by declines in condensed soups and broth, partly offset by gains in ready-to-serve soups. The division's operating earnings for the reported quarter were essentially flat to prior year at $226 million.

Campbell Soup's Global Biscuits and Snacks division sales in Q3 FY17 grew 2% to $623 million driven by gains in Pepperidge Farm, as well as gains in Arnott's biscuits in both Australia and Indonesia. For the reported quarter, the segment's operating earnings surged 14% to $98 million, driven by higher sales volume and lower advertising and consumer promotion expenses.

During the reported quarter, the Company's Campbell Fresh sales fell 6% to $248 million driven by lower sales of Bolthouse Farms refrigerated beverages. The segment's operating earnings dropped from $13 million to $1 million in the reported quarter, driven by unfavorable sales volume and mix, as well as the cost impact of both reduced beverage capacity and enhanced quality processes.

Unallocated Corporate Expenses

Campbell Soup's unallocated corporate expenses for Q3 FY17 were $27 million compared to $54 million in the prior year. The reported quarter included $7 million of charges associated with cost savings initiatives.

Cash Matters

For Q3 FY17, Campbell Soup's cash flow from operations was $1.01 billion compared to $1.21 billion in the prior year, which benefited from significant reductions in working capital. As of April 30, 2017, Campbell soup had cash and cash equivalents of $313 million and long-term debt of $2.27 billion.

Guidance

Campbell Soup has revised its fiscal 2017 guidance. The Company now expects sales to decline to 1% compared to the previous forecast of sales growth of 0% to 1%. Campbell Soup expects adjusted EBIT to increase by 2% to 4% ahead of the earlier guidance of to 4%, and adjusted EPS to grow by 3% to 5% compared to previous estimate of 2% to 5%, or $3.04 to $3.09 per share.

Stock Performance

At the close of trading session on Thursday, June 08, 2017, Campbell Soup's stock price slipped 1.20% to end the day at $56.66. A total volume of 1.23 million shares were exchanged during the session. The Company's shares are trading at a PE ratio of 35.82 and have a dividend yield of 2.47%. At Thursday's closing price, the stock's net capitalization stands at $17.31 billion.

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