Declining soup sales couldn't stem the tide of Campbell Soup's (CPB) earnings. The world's largest soup maker saw first-quarter earnings increase 17%, although soup sales dropped 3%.
The sultan of soup reported first-quarter earnings of 87 cents per share, six cents better than the consensus estimate. The strong results were attributed to lower costs and expenses. Unfortunately for Campbell, revenue did not meet expectations, totaling $2.2 billion when the Street expected $2.28 billion.
Campbell also upped its expectations for the current fiscal year. The company expects earnings per share to increase 9% to 11%, up from its earlier forecast range of 5% to 7%. Campbell attributes the improved outlook to better currency exchange rates.
Technically, 2009 has been a good year for Campbell. The equity has rebounded from its May nadir in the $25 region and is currently trading in view of the $35 level. The equity enjoys support from its 10-week moving average, which has provided support since the middle of May. The stock has not finished below this trendline since the week ended May 15 -- a streak that looks as if it will continue for the near future. With the good earnings news, we could see the equity challenge the $35 level and quickly put said level in its rear-view mirror.
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