Adjusted earnings per share for the fiscal second quarter were 77 cents, beating Wall Street's estimates of 70 cents. The company posted adjusted EPS of $1 a year earlier. On a GAAP basis, Campbell reported a loss of $59 million, or 20 cents a share. The GAAP loss was largely attributable to impairment charges on its Campbell Fresh business, which the company plans to sell. Revenue rose 24% from a year earlier to $2.71 billion, beating analysts' expectations of $2.66 billion.
"During the quarter, we continued to make progress against key strategic initiatives," said Mark Clouse, president and CEO. "Our efforts to stabilize our core business, integrate Snyder's-Lance, deliver our cost savings agenda and focus and optimize the portfolio are all on track."
Campbell is in a transition phase, as it looks to divest not only Campbell Fresh, but also its international division. The company said in August it wants to focus on packaged goods in North America.
The company also reaffirmed fiscal 2019 guidance, saying it expects net sales of between $9.975 billion and $10.1 billion before divestitures. Those estimates are roughly $2 billion lower assuming the divestitures. Adjusted EPS is expected to be between $2.45 and $2.53 pre-divestiture, and only slightly lower assuming divestitures.
The stock has fallen 19% in the past six months, which dates back to the days before the board announced which businesses it wants to sell. Activist hedge fund investor Dan Loeb of Third Point Capital had pushed for the sale of the entire business.