Campbell Soup To Report Q4 Results: Earnings Preview

RTTNews) - Campbell Soup Co. (CPB: News ), the world's largest soup maker, is scheduled to report fourth-quarter results before the market opens on Friday. On average, 15 analysts polled by Thomson Reuters expect the company to earn $0.26 per share for the quarter, while analysts look for fourth-quarter revenues of $1.52 billion. For the full year, earnings are expected to be $2.17 per share on revenues of $7.60 billion. Analysts' estimates typically exclude special items.

Camden, New Jersey-based Campbell manufactures and markets branded convenience food products. It operates in four segments: U.S. Soup, Sauces, and Beverages; Baking and Snacking; International Soup, Sauces, and Beverages; and North America Foodservice.

Makers of food products have experienced mixed effects due to the tough economy. While the economic crisis discouraged discretionary spending, eating at home became more popular. However, increase in input costs for key ingredients like grain made several of these companies push up prices. As the ingredient costs came down, most of these firms are now reaping its benefits. The currency fluctuations also could impact the company's earnings for the fourth quarter. Summer period is not one of the strongest seasons for soup makers.

In May, the company said its third quarter profit dropped 67% from the year-ago quarter, when results were boosted by a hefty gain from the sale of the Godiva Chocolatier business. The company reported third-quarter net income of $174 million or $0.49 per share, compared to $532 million or $1.40 per share for the year-ago quarter. Net sales for the third quarter fell 10% to $1.69 billion from $1.88 billion in the same quarter last year.

Among other events during the quarter, Campbell last month said it reduced the sodium level in its tomato soup. Credit Suisse expects Campbell's launch of healthier, low sodium versions of the male-oriented Chunky soup ''to add some needed excitement to this struggling p


''With the public now so focused on value and health, we think that Campbell has a golden opportunity to leverage its reputation as a "wholesome" meal and steal share from fast food restaurants through better marketing. Fast food restaurants' vulnerability on calories, fat, and cost make them an easy target,'' the brokerage added.

In July, at an investor meet, the company said it sees ''a world of extraordinary value in soup, especially in the emerging markets of Russia and China.'' Campbell is preparing for expansion in Russia based on a distribution agreement with Coca-Cola Hellenic. While announcing the results later today, Campbell is likely to update on its growth in emerging