CAMDEN, N.J. - Campbell Soup Company (NYSE:CPB) has reported a robust third quarter for fiscal 2024, surpassing analyst expectations with an adjusted EPS of $0.75, a $0.04 improvement over the consensus estimate of $0.71. Revenue also exceeded forecasts, reaching $2.37 billion against the anticipated $2.33 billion.
The company attributes its solid quarterly performance to sequential volume improvement, stable organic net sales, and double-digit growth in both adjusted EBIT and EPS. The recent acquisition of Sovos Brands has been integral to this success, contributing significant incremental growth. President and CEO Mark Clouse expressed enthusiasm about the integration of Sovos Brands, highlighting its substantial role in bolstering the company's growth as it navigates consumer recovery.
Campbell Soup has also revised its full-year fiscal 2024 guidance, taking into account the performance of the base business and the Sovos Brands acquisition. The updated forecast anticipates a reported net sales growth of 3% to 4%, with organic net sales expected to meet the midpoint of a range between 0% and a 1% decline. This adjustment reflects a slight decrease from the previously indicated range of 0% to 2% growth.
Adjusted EBIT is projected to grow by approximately 6.5% to 7%, reflecting the partial year contribution from the Sovos Brands acquisition, including integration savings, and strong base business performance. Adjusted EPS for the combined business is expected to see a growth of 2% to 3%, reaching $3.07 to $3.10, compared to $3.00 in the previous year.
The positive earnings report and upgraded guidance have led to a 1.4% uptick in Campbell Soup's stock, indicating investor confidence in the company's strategic direction and execution.
Looking ahead, Campbell Soup anticipates building momentum into the fourth quarter, with expectations of continued stabilization in year-over-year volume growth and double-digit increases in both fourth quarter adjusted EBIT and adjusted earnings per share, alongside ongoing progress with the Sovos Brands integration.
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