Campbell Soup posted better-than-expected quarterly earnings last night as price increases and new items such as low-sodium soups helped lift sales.
But the stock was about flat as some analysts questioned the near-term growth potential of a company that already trades at about 20 per cent times fiscal year 2007 earnings.
The company said profit was $291 million, or 72 cents a share, in the fiscal first quarter, ended October 29th, compared with $302 million, or 73 cents a share, a year earlier, when the company recorded a $47 million tax benefit.
Campbell - which makes its namesake soups, Pepperidge Farm cookies and Godiva chocolates - sold its UK and Ireland businesses in August and used $620 million of the proceeds to buy back shares.
Campbell did not lift its full-year earnings forecast despite the solid first quarter, and management said there were opportunities for the company to spend more to build its business.
For the year, Campbell stood by its forecast for an increase of 5 to 7 per cent from earnings of $1.73 a share in the prior year, before one-time items.