campbell-soupOn Tuesday, Campbell Soup Co (CPB) reported earnings that are better than they originally anticipated during its first 2017 fiscal quarter. Before market open, Tuesday, the Camden, NJ-based food manufacturer posted new adjusted earnings of $1.00 per share, passing analyst’s estimates of $0.95; revenue showed at $2.2 billion, which matched Wall Street forecasts. On that note, the stock rose by nearly 3.6 percent—to $57.01—by midday. However, it is important to note that the company’s fresh foods segment still struggles.

Indeed, Campbell’s fresh food segment suffered from a 1 percent decline in organic sales. Despite the growing interest in “better-for-you” products, Campbell brands such as Garden Fresh Gourmet and Bolthouse Farms are not performing as well as they would hope. Of course, this might be due to the fact that the company issued a voluntarily recall of approximately 3.8 million protein drinks, in June, when consumers began to complain about and report illness potentially related to the drinks.

“Campbell Fresh continues to rebuild capacity for Bolthouse Farms Protein PLUS drinks following a voluntary recall last quarter, and remains focused on working to regain lost carrot customers over time with improved quality,” explains CEO Denise Morrison.

Driven mostly by lower sales from Bolthouse Farms refrigerated beverages and carrots, sales in the company’s fresh food segment fell by 6 percent to $234 million over last year. Fortunately, this was partly offset by gains in the company’s refrigerated soups sector.

Obviously, the fresh unit is a “strategically important” sector of the business as it addresses the major consumer trend for healthier options. Still, Morrison remains “optimistic” about the company’s plans to accelerate growth among these trends in the US market, partially on the back of the strength of the Pepperidge Farm brand.

Morrison notes, “Fiscal 2017 is off to a solid start relative to our expectations. We continue to execute against our strategic imperatives, reinvest in our business to stimulate topline growth and aggressively manage our costs.”

Overall, Campbell Soup Co continues to see full-year adjusted per share earnings fall between $3.00 and $3.09. Some analysts are looking to see earnings to fall around $3.04 per share for the 2017 fiscal year.