Packaged foods giant Campbell Soup Company (
) on Wednesday warned that its full-year earnings would be lower
than originally anticipated, as first quarter earnings came in
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
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
The Bottom Line
We have been recommending shares of Campbell Soup (
) 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 (
) is a "Recommended" dividend stock, holding a Dividend.com DARS™
Rating of 3.5 out of 5 stars.
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, as well as a detailed explanation of
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