Campbell Soup Co. today (3 September) predicted earnings for the new financial year above the consensus estimate on Wall Street alongside numbers for its last quarter that met analyst forecasts.

The soup-to-crackers manufacturer has forecast an earnings per share range of US$2.53 to $2.58 for the 2015/16 financial year, which started on 3 August. Analysts have estimated earnings of $2.53. In its most recent fiscal year, the company generated earnings per share of $2.46.

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Campbell, which also owns baby food business Plum Organics and chilled food manufacturer Bolthouse Farms, said it expects adjusted EBIT to grow by 3-5% from the $1.22bn it booked for 2014/15.

The group forecast sales to be flat at worst or grow by 1% at best. Wall Street has predicted sales growth of 1%. In the year to 2 August, Campbell's net sales stood at $8.08bn, down 2%.

The guidance includes the impact of currency translation, which Campbell estimates will hit sales and earnings by 2%, as well as a 1% benefit for sales and EBIT from the recent acquisition of salsa business Garden Fresh Gourmet.

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The forecasts came alongside results for the final quarter of 2014/15 that included underlying earnings per share that exceeded analyst expectations.

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Campbell booked adjusted EPS from continuing operations of $0.43 for the fourth quarter of the year, up 5% on the final three months of 2013/14. According to a Thomson Reuters poll, analysts had expected earnings of $0.42 a share. Reported earnings per share, which included one-off items, fell 49% to $0.22.

Fourth-quarter net sales fell 9% to $1.69bn, matching the consensus analyst forecast. Campbell said the decrease was the consequence of foreign exchange headwinds and one less trading week versus the prior year period. Organic sales in the fourth quarter were up 1%.

Earnings before interest and tax fell 45% in the fourth quarter to $128m. On an adjusted basis, however, EBIT increased 5%.

Campbell CEO Denise Morrison characterised the group's fourth quarter performance as "solid.. considering the difficult operating environment". The company delivered sales, adjusted EBIT and adjusted EPS "within our most recent guidance", she stressed.

Morrison continued: "Fiscal 2015 was eventful for Campbell. We took important steps to lay the foundation for the future… Looking ahead to fiscal 2016, we believe that our focus 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."

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