Campbell Soup (CPB) - Get Report had the right recipe for Wall Street Wednesday, beating analysts' second-quarter earnings expectations and increasing its full-year guidance.

Shares of the Camden, N.J., parent of such brands as Prego pasta sauce. V8 juice, Swanson and Pepperidge Farm at last check were up 5.3% to $50.40.

For the quarter ended Jan. 26, net income was $3.97 a share against a loss of 20 cents in the year-earlier quarter. 

Earnings from continuing operations were 56 cents versus 58 cents. The latest adjusted per-share earnings came to 72 cents, beating the call for 66 cents in a survey of analysts by FactSet.

Sales totaled $2.16 billion, easing 0.5% from $2.17 billion a year earlier but ahead of Wall Street's call of $2.15 billion, according to FactSet.

Gross-profit margin widened to 34.3% from 32.5% a year earlier. The latest adjusted gross margin was 34.4%, widened from 32.9%.

In addition, Campbell's said it now expects fiscal 2020 adjusted earnings to range $2.55 to $2.60 a share, an increase of 5 cents on both ends from an earlier forecast.

Campbell and other packaged-food companies have seen their shares rise recently as shoppers stocked up on canned goods in light of the spreading coronavirus.

“Anticipation of disruption is driving stockpiling now,” Piper Sandler analyst Michael Lavery said in a research note. 

“We believe from anecdotes that consumers are already stocking up on non-perishable food, as grocery stores see surges in traffic and larger baskets.”

Campbell rose 6.3% on Monday, the stock’s biggest daily gain in almost nine months.

Campbell "delivered another high-quality quarter with organic sales and adjusted gross margin, EBIT and earnings growing in line with or above our expectations," said Mark Clouse, president and CEO. 

In addition, the company's deleveraging effort delivered a "much-improved leverage ratio," Clouse said.

The company said net sales in the meals and beverage segment were comparable with a year ago and driven primarily by gains in Prego pasta sauces and soup, partly offset by declines in beverages. 

Net sales of soup increased 1% with gains in condensed soups and broth, offset partly by declines in ready-to-serve soups.

Net sales in the snacks segment dropped 1%. But excluding the impact from the sale of the European chips business, net sales increased 2%, driven primarily by gains in Goldfish crackers and cookies, as well as gains in Kettle Brand and Cape Cod potato chips.

This was offset partly by declines in fresh bakery products and the partner brands within the Snyder’s-Lance portfolio as the company continues its plan to prioritize select partners to reduce complexity and improve execution.