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Campbell Soup Cuts Full-Year Outlook on Weaker Q1 Results (CPB)

By Dividend.com,  November 10, 2010, 09:07:09 AM EDT

Packaged foods giant Campbell Soup Company ( CPB ) on Wednesday warned that its full-year earnings would be lower than originally anticipated, as first quarter earnings came in below expectations.

The company said that "increased promotional spending that resulted in lower-than-planned purchases of its soup by U.S. consumers, amid weak economic conditions and intense competitive pricing activity."

Campbell now expects Q1 sales to fall 1% from last year, with earnings per share falling 6%.

For the full year, the company now predicts net sales to rise 1% to 3% from last year, which EPS rising 2% to 4%. "Our increased promotional spending in the first quarter behind U.S. soup did not produce the planned volume gains. This result was due in part to even deeper soup promotions by competitors, which we chose not to match," said CEO Douglas Conant.

The company is slated to report first quarter earnings results on Nov. 23.

Campbell Soup shares fell 75 cents, or -2.1%, in premarket trading Wednesday.

The Bottom Line
We have been recommending shares of Campbell Soup ( CPB ) since Dec.2, 2009, when the stock was trading at $35.56. The company has a 3.05% dividend yield, based on last night's closing stock price of $36.05.

Campbell Soup Company ( CPB ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: CPB



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