NEW YORK (TheStreet) -- Shares of Campbell Soup Co. (CPB) closed lower -2.35% to $44.06 on Monday after the company reported net income and sales that were less than what analysts had expected for the 2014 third quarter.
Analysts expected the convenience food products company to post $2.0 billion in sales rather than the $1.97 billion the company reported, according to Reuters.
Campbell's net income rose 1.7% to $184 million, or 58 cents per share, from $169 million, or 53 cents per share, from the same quarter the prior year.
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The company's net income fell just below analyst expectations of 59 cents per share.
Campbell reported adjusted earnings from continuing operations were 62 cents per share for the 2014 third quarter, up from 58 cents per share in the year ago quarter, beating analysts estimates of 58 cents per share.
- CPB's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 71.0% when compared to the same quarter one year prior, rising from $190.00 million to $325.00 million.
- CAMPBELL SOUP CO has improved earnings per share by 37.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CAMPBELL SOUP CO reported lower earnings of $2.16 versus $2.41 in the prior year. This year, the market expects an improvement in earnings ($2.53 versus $2.16).
- 38.93% is the gross profit margin for CAMPBELL SOUP CO which we consider to be strong. Regardless of CPB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CPB's net profit margin of 14.24% compares favorably to the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Food Products industry and the overall market, CAMPBELL SOUP CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: CPB Ratings Report
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