Fri, Sep. 25, 2:04 PM
- Packaged food stocks are ahead of broad market averages for the day. There are some consistent themes playing out in the sector which have increased interest in select names. Topping the list are M&A potential, activist investor action, and good old-fashioned fundamental valuation.
- Gainers: Treehouse Foods (NYSE:THS) +3.1%, B&G Foods (NYSE:BGS) +2.9%, ConAgra Foods (NYSE:CAG) +2.7%, Kellogg (NYSE:K) +2.6%, General Mills (NYSE:GIS) +2.3%, Campbell Soup (NYSE:CPB) +2.3%, J.M. Smucker (NYSE:SJM) +1.6%.
Wed, Sep. 16, 11:01 AM
- A statement from Anheuser-Busch InBev (BUD +5%) indicates the company must make a formal offer for SABMiller (OTCPK:SBMRY +19.5%) before October 14 or take a pass on the mega-merger to stay in compliance with U.K. law.
- There's a ripple effect with beer stocks circling the globe that includes distributors such as Compania Cervecerias Unidas (CCU +3.1%), Fomento Economico Mexicano (FMX +1.8%), AmBev (ABEV +2.1%).
- Another intriguing aspect of a potential A-B takeover of SABMiller is the side effects on the food industry if 3G Capital is fully engaged on the deal. 3G is a major player in food mergers and a factor in how investors value companies such as Mondelez International (MDLZ +0.2%), PepsiCo (PEP +0.4%), TreeHouse Foods (THS +0.1%), Campbell Soup (CPB +1.9%), JM Smucker (SJM +1.1%), and other food names.
- A-B InBev statement (.pdf)
- Previously: AB InBev prepping offer for SABMiller
- Previously: Beer stock rally with M&A on tap
Thu, Sep. 3, 7:42 AM
- Revenue by segments: U.S. simple meals: $505M (-3%); Global baking and snacking: $553M (-12%); International simple meals and beverages: $142M (-24%); U.S. beverages: $165M (-10%); Bolthouse and foodservice: $328M (-2%).
- Total volume and mix fell 1% for the quarter.
- Adjusted gross margin rate grew 180 bps to 36.1% due to productivity improvements, higher selling prices and lower promotional spending.
- FY2016 Guidance: Net sales: 0 to +1%; Adjusted EBIT: +3% to +5%; Adjusted EPS: $2.53 to $2.58.
Wed, Jul. 22, 3:56 PM
- Campbell Soup (CPB +1.8%) trades higher after investors focused on the company's lift in EPS guidance over the reduced forecast for organic revenue growth.
- At its Investor Day meeting today, the food concern said it will increase its focus on categories with growth potential including health and packaged fresh.
- Increased disclosures on how food is made and ingredients picked will be made available on the whatsinmyfood.com website.
- Campbell Soup plans to remove artificial colors and flavors from most of its North American products by the end of FY18.
- Earnings call webcast
- Previously: Campbell Soup raises profit guidance at investor meeting (July 22)
Wed, Jul. 22, 8:25 AM
- Campbell Soup (NYSE:CPB) issues a strategic update ahead of an investor meeting.
- The company highlighted the advantages of changing reporting segments by product type to Americas Simple Meals and Beverages, Global Biscuits and Snacks, and Campbell Fresh.
- New cost reduction initiatives are seen generating $75M in savings this fiscal year. The annual savings target is lifted to $250M from $200M.
- Favorable gross margin performance has led to a boost in profit guidance. Campbell sees 2015 EPS of $2.43-$2.48 vs. $2.32-$2.38 prior and $2.38 consensus.
- CPB +1.65% premarket to $48.25.
Tue, Jun. 30, 11:54 AM
- Campbell Soup (NYSE:CPB) is up 2.53% on a large volume spike.
- There is unconfirmed speculation the company hired a strategic adviser.
- It's been an active day for the food sector with ConAgra's announcement it would exit the private label business creating a stir.
- Previously: TreeHouse Foods and Post seen as possible ConAgra private label buyers (June 30)
Thu, Mar. 26, 12:37 PM
- Deutsche Bank thinks 3G Capital will be back in the food sector for a major acquisition faster than some other investment firms anticipate.
- 3G put itself in a stronger position to make a major purchase by not adding debt in the Kraft deal.
- Analyst Eric Katzman sees some food names trading with a premium as the 3G shadow hangs over the sector, while others have downside risk with M&A speculation not making as much sense.
- Premium on: ConAgra (NYSE:CAG), General Mills (NYSE:GIS), Mondelez International (NASDAQ:MDLZ), Pinnacle Foods (NYSE:PF), PepsiCo (NYSE:PEP).
- Premium off: Campbell Soup (NYSE:CPB), Hershey (NYSE:HSY), Hormel (NYSE:HRL), Kellogg (NYSE:K), J.M. Smucker (NYSE:SJM).
- Previously: Investors snapping up food stocks (Mar. 25 2015)
- Previously: Beer fallout from Kraft buyout (Mar. 25 2015)
- Previously: Kraft-Heinz merger has a few ETFs on the move (Mar. 25 2015)
Wed, Mar. 25, 7:07 AM
- Food stocks could see a lift today after a high-profile merger between Kraft and Heinz was announced.
- The sector has been identified by analysts as a likely hotbed for consolidation.
- Early premarket gainers include Mondelez International (NASDAQ:MDLZ) +2.1%, General Mills (NYSE:GIS) +1.0%, and Campbell Soup (NYSE:CPB) +0.4%.
- Previously: Kraft, Heinz announce merger
Thu, Feb. 12, 5:28 PM
- Campbell Soup (NYSE:CPB) -4.5% AH after lowering guidance for its FQ2 and the full year ending in August, partly due to foreign currency translation.
- CPB now sees FQ2 EPS of $0.65-$0.66 vs. $0.68 analyst consensus, revenues falling 2% to ~$2.24B and in line with consensus, and adjusted EBIT declining by ~17%.
- For FY 2015, CPB lowers EPS to $2.32-$2.38 from earlier guidance of $2.42-$2.50 and below $2.45 consensus, while seeing revenues rising or falling by ~1% to $8.19B-$8.35B vs. $8.2B consensus, reflecting the negative impact of currency translation; excluding the forex impact, sales guidance is unchanged.
- CPB had already lowered its outlook in November, pointing to currency volatility.
Wed, Jan. 7, 8:05 AM
- Campbell Soup (NYSE:CPB) is higher in early trading after being thrown back into the M&A pot.
- Today's speculation centers on a play from 3G in the food sector.
- It's of note that 3G was able to quickly cut $700M in costs when it snapped up Heinz and lifted the company's profit margins by 700 bps.
- CPB +2.3% premarket to $44.01.
Wed, Jan. 7, 7:12 AM
- Shares of Campbell Soup (NYSE:CPB) and PepsiCo (NYSE:PEP) are on watch after the WSJ reports 3G is discussing trying to acquire a major food company.
- Sources indicate the massive size of PepsiCo deal could prompt a partial buyout or a bid in tandem with Aneuser-Busch InBev (NYSE:BUD).
- PEP +0.8% premarket, CPB inactive.
Nov. 26, 2014, 5:37 PM
Sep. 8, 2014, 7:48 AM
- Campbell Soup (NYSE:CPB) reports organic sales fell 2% in FQ4.
- Acquisitions added 3% to growth while promotional spending clipped 2%.
- Gross margin rate -210 bps to 34.1%.
- Segment growth: U.S. Simple Meals +5% to $518M; Global Baking and Snacking +10% to $628M; International Simple Meals and Beverages +1% to $188M; U.S. Beverages +6% to $184M; Bolthouse and Foodservice +11% to $334M.
- Guidance: Full-year EPS of $2.45-$2.60 expected vs. $2.54 consensus.
- CPB -1.9% premarket
May 27, 2014, 7:28 AM
- A $6.4B offer by Pilgrim Pride's (PPC) to buy Hillshire Brands (HSH) could rattle the food sector.
- For starters, the deal could spoil Hillshire's offer on the table to buy Pinnacle Foods (PF).
- The quick analyst take on a PPC-HSH combination is favorable with the companies focused in different areas (chicken vs. packaged meat) which could lead to easy access to new distribution channels.
- Premarket: HSH +22.9% to $45.49, PF -5.3% to $31.50.
- Also on merger watch in the food sector: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K CAG
May 19, 2014, 9:13 AM
May 19, 2014, 8:24 AM
- Shares of Campbell Soup (CPB) are down sharply in early trading after the company sees margins crumble in FQ3 and cuts its growth outlook.
- Soup sales were disappointing for the company despite the extended cold snap across the U.S. during the winter.
- CPB -5.5% premarket
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