(Bloomberg) -- Campbell Soup Co. posted profit that beat estimates, sending its shares surging amid signs that Chief Executive Mark Clouse is making progress on a turnaround at the food giant.
- Excluding some items, profit for continuing operations and Campbell International amounted to 50 cents a share in the fourth quarter, beating estimates. The results sent shares up as much as 10.9% on Friday, the biggest intraday move in more than a year.
Key Insights
- Soup sales in the U.S. were up in the most recent quarter, a positive sign as the company tries to breathe life into a business that has been hampered by changing consumer tastes.
- Campbell also got a boost from its snack operation. Clouse, who took over in January, is working to integrate Snyder's-Lance, the snack giant that makes Cape Cod and Kettle potato chips. That company was acquired by his predecessor for $4.9 billion in 2018, adding to a snack portfolio at Campbell's that includes the Goldfish brand.
- Campbell has overhauled its operations under Clouse, shedding the Australian maker of Tim Tam cookies and other international operations for $2.5 billion. The sale, coming after it also unloaded its fresh juice business, marked the completion of a transformation plan announced last year amid a sales slump and pressure from activist investor Dan Loeb.
Market Reaction
- Campbell was up 8.3% to $46.92 at 12:27 p.m. in New York, the biggest move among companies in the S&P 500 index. The stock had gained 31% this year through Thursday's close.
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- For company statement, click here.
To contact the reporter on this story: Deena Shanker in New York at dshanker@bloomberg.net
To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Craig Giammona
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