NEW YORK (TheStreet) -- Campbell Soup Co. (CPB) shares are up 2.02% to $47.88 in early market trading on Friday after the food products manufacturer reported third quarter earnings results before the opening bell today.
The Camden, NJ-based company reported third quarter net income of $182 million, or 62 cents per diluted share on an adjusted basis, on revenue that fell 3.6% to $1.9 billion. Analysts on average were expecting the company to report third quarter earnings of 52 cents per share on revenue of $1.93 billion.
The company said that the drop in revenue was due to overseas currency headwinds caused by a strengthening dollar as well as retailer inventory movements in its U.S. soup business.
"In the quarter, we also made progress against our strategic enterprise redesign, including our cost reduction initiative," said CEO Denise Morrison. "We believe that a strategy that focuses on driving growth, aggressively reducing costs and reinvesting a portion of the savings in the areas of our business with the greatest growth potential is the best way to create shareholder value over time."
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 multiple 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 increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income."