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NEW YORK (TheStreet) -- Campbell Soup Co. (CPB) - Get Free Report  shares are rallying in Tuesday's pre-market trading session after the soup company earlier this morning delivered strong first quarter 2016 results that surpassed analysts' expectations. 

Earnings for the latest quarter came in at 95 cents a share, beating Wall Street forecasts' of 76 cents a share.

Revenue of $2.2 billion beat estimates of $2.21 billion.

In the same period the year prior, the company earned 78 cents a share on revenue of $2.26 billion.

TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio commented on the company's earnings, saying: "Campbell Soup is undergoing a remarkable transformation based on cost take outs and a move toward more organic and natural. They are doing their own internal activism."

In the past year, the company has made efforts to boost its sales growth by introducing organic varieties of products like tomato bisque, taking initiatives to remove high-fructose corn syrup from some of its products and reducing use of artificial ingredients, the Wall Street Journal reports. 

For the recent quarter, adjusted gross margin improved by 2.6 percentage points, helped by positive supply chain performance, productivity enhancements and higher selling prices.

However, organic sales were flat, as volume declines offset higher selling prices and a reduction in promotional spending. 

Along with these results, the company also lifted its earnings outlook for fiscal 2016 as it now expects adjusted earnings to increase between the range of $2.75 to $2.83 a share, above with its previous guidance of $2.53 and $2.58 a share.

However, the company reduced its sales outlook due to currency headwinds. Sales are expected to change by -1% to 0%, compared to its past guidance of 0% to +1%, the company said. 

Separately, TheStreet Ratings team rates CAMPBELL SOUP CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate CAMPBELL SOUP CO (CPB) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: CPB

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