Campbell Soup Co. (CPB:UN) posted profit that beat estimates, sending its shares surging amid signs that Chief Executive Mark Clouse is making progress on a turnaround at the food giant.

Excluding some items, profit for continuing operations and Campbell International amounted to 50 cents a share in the fourth quarter, beating estimates. The results sent shares up as much as 10.9 per cent on Friday, the biggest intraday move in more than a year.

Key Insights

• Soup sales in the U.S. were up in the most recent quarter, a positive sign as the company tries to breathe life into a business that has been hampered by changing consumer tastes.
• Campbell also got a boost from its snack operation. Clouse, who took over in January, is working to integrate Snyder’s-Lance, the snack giant that makes Cape Cod and Kettle potato chips. That company was acquired by his predecessor for US$4.9 billion in 2018, adding to a snack portfolio at Campbell’s that includes the Goldfish brand.
• Campbell has overhauled its operations under Clouse, shedding the Australian maker of Tim Tam cookies and other international operations for US$2.5 billion. The sale, coming after it also unloaded its fresh juice business, marked the completion of a transformation plan announced last year amid a sales slump and pressure from activist investor Dan Loeb.

Market Reaction

• Campbell was up 8.3 per cent to US$46.92 at 12:27 p.m. in New York, the biggest move among companies in the S&P 500 index. The stock had gained 31 per cent this year through Thursday’s close.