Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, June 11, 2021

Article Excerpt

CAMPBELL SOUP CO., $46.11, New York symbol CPB, is still a buy. Under its new strategic plan, which began in 2018, Campbell sold most of its international and refrigerated-foods businesses. That let it focus on canned soups, pasta and V8 vegetable juices. Campbell also kept its snack food operations. They were significantly expanded in March 2018 when the company paid $6.1 billion for snack-foods maker Snyder’s-Lance. Sales are starting to fall back to normal levels as COVID-19 lockdowns ease and restaurants re-open. In its fiscal 2021 third quarter, ended May 2, 2021, Campbell’s sales fell 11.3%, to $1.98 billion from $2.24 billion a year earlier. That also missed the consensus forecast of $2.00 billion. Earnings before one-time items in the quarter declined 31.3%, to $0.57 a share from $0.83. That too missed the consensus estimate of $0.66. The lower earnings are mainly due to rising ingredient prices and supply chain disruptions as a result of severe winter weather in Texas earlier this year. In response,…

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