Campbell Soup Co. (NYSE: CPB) has offered up new guidance to investors about its financial strategies. Along this vein the company unveiled plans for its new divisions.

CEO Denise Morrison updated investors on Campbell’s strategies to improve its financial performance. Ultimately the goals were to be more transparent about how its foods and drinks are made to build greater consumer trust and to increase the company’s focus on faster-growing categories and regions.

Consistent with its previous sales guidance, Campbell expects sales to decline by 1%, reflecting the impact of foreign exchange rates. Reflecting favorable gross margin performance and earlier-than-expected benefits from the previously announced cost reduction initiatives, the company now expects earnings per share (EPS) to be in the range of -1% to 0%, or $2.43 to $2.46 per share. The previous guidance for EPS was in the range of -5% to -3%, or $2.32 to $2.38 per share. The consensus estimates are $0.36 in EPS on $1.69 billion in revenue.

In terms of the long-term growth targets, the company made some revisions to reflect the current conditions in the food industry. The new long-term target for organic sales growth is 1% to 3%, compared to the previous target of 3% to 4%. Long-term earnings growth targets, which now exclude currency translation, remain unchanged with EPS growing 5% to 7%.

ALSO READ: Blue Buffalo Has a Hearty IPO

Along with this guidance, Campbell Soup outlined three new divisions:

• Americas Simple Meals and Beverages, the largest division and the company’s economic engine, will be managed for moderate growth and margin expansion.
• Global Biscuits and Snacks, unifies the Pepperidge Farm, Arnott’s and Kelsen businesses into a fully integrated biscuits and snacks portfolio.
• Campbell Fresh, which now combines recently acquired Garden Fresh Gourmet with the Bolthouse Farms portfolio and Campbell’s retail refrigerated soups.

Shares of Campbell Soup were up 2.1% at $48.46 on Wednesday. The stock has a consensus analyst price target of $44.82 and a 52-week trading range of $41.15 to $49.16.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.