NEW YORK (TheStreet) -- Campbell Soup Co. (CPB) - Get Campbell Soup Company Report shares are jumping 2.54% to $60.95 in Wednesday's pre-market trading session after the largest U.S. soup company by sales elevated its 2016 earnings guidance on Tuesday afternoon as it expects second quarter fiscal 2016 profit to be stronger than expected.
When the company releases its second quarter results on February 25, it now forecasts earnings to be 87 cents a share, above analysts' estimates of 71 cents a share.
As a result, it anticipates 2016 earnings to grow between the range of 9% to 12%, compared to its previous guidance of a growth between 4% to 7%, largely helped by cost cuts.
By the end of fiscal 2018, Campbell Soup said it would increase its savings target to $300 million from $250 million, and this year, it expects $120 million to $140 million in savings.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B.
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 good cash flow from operations, expanding profit margins, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CPB