Campbell Soup (CPB) - Get Report reported stronger-than-expected adjusted fourth-quarter earnings on what the chief executive called "unprecedented demand" for its offerings during the coronavirus pandemic.
For the quarter ended Aug. 2 the Camden, N.J., company swung to GAAP net income of 28 cents a share from a loss of 3 cents in the year-earlier quarter.
Adjusted earnings of 63 cents per share were 50% higher than the 42 cents of a year earlier.
Revenue rose 18% year over year to $2.11 billion from $1.78 billion.
Analysts surveyed by FactSet were expecting the company to report adjusted earnings of 60 cents a share on revenue of $2.06 billion.
CEO Mark Clouse said the quarter "concluded a year that furthered our strategic plan and solidified a significantly strengthened foundation."
The foods producer reported a 1.4-percentage-point wider gross margin, 35.4%, driven by supply-chain productivity improvements and cost cuts.
Marketing and selling expense rose 36% to $265 million, driven by increased spending on advertising and promotions. Administrative expense rose 12% in the period to $186 million.
The company also said it was limiting its guidance to the current quarter due to uncertainty surrounding the pandemic.
For the current quarter, adjusted profit should come in at 88 cents to 92 cents a share. Net sales are expected to rise 5% to 7% year over year.
Analysts in FactSet's survey are expecting the company to report earnings of 89 cents per share on revenue of $2.29 billion.
At last check Campbell shares were off 4.8% at $49.95. The stock is up more than 6% year to date.