On Tuesday, Shares of Campbell Soup Company (NYSE: CPB) lost -0.05% to $39.47. The stock grabbed the investor's attention and traded 978,586 shares as compared to its average daily volume of 2.73M shares. The stock’s institutional ownership stands at 54.20%.
Campbell Soup Company (CPB) recently stated its second-quarter results for fiscal 2019.
Second-Quarter Results:
Sales increased 24 percent to $2.70B reflecting a 26-point benefit from the recent acquisitions of Snyder’s-Lance and Pacific Foods. Organic sales, which exclude the negative impact of currency translation, were comparable to the prior year as gains in Global Biscuits and Snacks were offset by declines in Campbell Fresh and Meals and Beverages. Sales in the quarter benefited by about 50 basis points from the change in revenue recognition adopted in fiscal 2019, which impacts the timing of expense related to promotional programs. The annual impact is not expected to be material.
Marketing and selling expenses increased 16 percent to $264.0M reflecting a 22-point increase from the inclusion of the recent acquisitions. Excluding items impacting comparability in the current year and the impact of the recent acquisitions, adjusted marketing and selling expenses reduced driven mainly by lower marketing overhead and selling expenses, counting the benefits from cost savings programs. Administrative expenses increased 9 percent to $180.0M. Excluding items impacting comparability, adjusted administrative expenses increased 15 percent to $160.0M mainly because of the inclusion of the recent acquisitions.
Other expenses were $226.0M as contrast to $70.0M in the prior year. Excluding items impacting comparability, other income reduced from $29.0M in the prior year to $5.0M reflecting amortization of intangible assets associated with recent acquisitions and lower gains on investments.
As stated EBIT was $19.0M. Excluding items impacting comparability, adjusted EBIT reduced 1 percent to $399.0M driven by declines in the base business, offset mostly by incremental earnings from our recent acquisitions. The change in revenue recognition had a favorable 3-point impact in the quarter.
Net interest expense was $92.0M contrast to $32.0M in the prior year reflecting higher levels of debt associated with the recent acquisitions and higher average interest rates on the debt portfolio. The tax rate was 19.2 percent as contrast to a negative 35.1 percent in the prior year. Excluding items impacting comparability, the adjusted tax rate increased 5.2 percentage points from 18.9 percent to 24.1 percent. The adjusted tax rate in the prior-year quarter benefited from a year-to-date true-up to reflect the lower U.S. federal tax rate as part of the Tax Cuts and Jobs Act enacted in December 2017.
CPB has a market value of $11.64B while its EPS was booked as $-0.56 in the last 12 months. The stock has 294.74M shares outstanding. In the profitability analysis, the company has gross profit margin of 31.70% while net profit margin was -1.70%. Beta value of the company was 0.41; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 3.50.
