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Campbell Soup Shares Suffer Slump
A weak third quarter sales ending April 27 was a disappointment for the company, a separate report from Reuters said. Morrison said the company’s promotional work did not do much to raise its soup sales.
Analysts were predicting higher profits from the food giant with profits lower than expected. According to reports, Campbell was predicted to earn $2.0 billion but the company’s report only posted $1.97 billion earnings. On Monday, the shares closed down 2.35 percent at $44.06
Longer term, there has been a net income increase for the company from $169 million to $184 million for the same period
Similarly, the share price increased from 53 cents to 58 cents. However, this still fell short of what analysts predicted. Analysts predicted a share price of 59 cents.
Reuters further added that Campbell is expecting a lower share price of $2.53-$2.58. Analysts prediction of $2.53 does fall within the expected price range of the company.
Despite the disappointing performance, the company still leads the soup industry in the United States.
According to the Euromonitor, Campbell’s Soup had a 47 percent value share in 2013.
However, Campbell Soup’s loss is Soupman’s gain.
Soupman Inc., maker of the The Original Soupman (SOUP; http://finance.yahoo.com/q?s=SOUP), in partnership with Tetra Pak, has packaged its product in a well-established, well proven and accepted form. Ideally suited for a grocery store purchased and domestically consumed foodstuff product that fits in well with the convenience food market that is booming.
Soupman is taking a chunk out of the Campbell’s market presence possibly due to Campbell’s being seen as old fashioned by younger generations.
In a three –year period, Soupman stocks have tripled their value. According to Soupman’s quarterly report, the U.S soup market is worth $65 billion annually. The soup industry, which has Campbell its biggest player, is expected to have an eight percent growth between 2013 to 2016, according to The Euromonitor International prospect report on the U.S. market.
But new players like Soupman, is increasing the diversity of its products. New and exciting recipes are capturing the attention of Millennial generation shoppers.
Apart from the convenience of the microwavable Tetra-Pak ,another positive aspect of not using cans to package the soups are reports that canned products can contain Carcinogenic BPA.
Soupman is also conscious about child nutrition, based on its Yahoo Finance data, the company is selling food products to New York City public schools, as well as in the City University of New York, College of Staten Island and others by providing them with food items that are low in fat, low in sodium and high in dietary fiber but also great tasting.
It has also been reaching out to the younger consumers who are always in search of newer and bolder flavors such as Lobster Bisque, Chicken Noodle, Lentil and Tomato Bisque.
Soupman products are now available in several grocery stores. Heat and serve pouches are on soup aisles at Wal-Mart, Stop & Shop, Giant Food Stores, Martin’s Food Markets, Safeway and more.
High street vendors are increasing with Original Soupman soups in heat and serve tetra packs now being sold in Mohegan Sun Casino in Connecticut and Original Soupman Delicatessen & Restaurant at the Resorts Casino Hotel in Atlantic City. The company is also expected to go mobile with “Soup on Wheels” this year.
Convenience food does not have to mean unhealthy food. Soupman has introduced new healthier version food items of Mexicali Beans, Stewed Pinto Beans and Curried Chick Peas with Tomatillos. According to Euromonitor International, introduction of new products in the soup industry will drive the stock value up despite a projected decline in volume.
In the same report, Soupman Inc shows that it is establishing itself in the competitive supermarket and on-the-go easy meals market competing against giants but taking an increasingly large share of sales due to innovative product development and intelligent trend forecasting.
Recent stock performance has dipped however this is just a temporary wobble on an otherwise positive outlook.
The Soupman’s drop in share price is most likely linked to Campbell’s financial statement. Campbell’s having the largest market share greatly affects others in the industry and Soupman’s dip may well be attributed to the loss in confidence bought about by the latest financial report from Campbell’s.
In a 52-week range, Soupman shares varied from 0.28 to 0.76 per share. The average day’s range is 0.28 to 0.36 a share.
Fundamentally Soupman Financial data shows that net income is increasing from year to year.