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CAMDEN, N.J. -On Wednesday, Campbell Soup Company (NYSE:CPB) reported mixed second-quarter results and lowered its full-year outlook.
The company’s shares were down -5.48% in premarket trading following the release.
The food products maker posted adjusted earnings of $0.74 per share for the quarter ended January 26, edging past analyst estimates of $0.73. However, revenue of $2.68 billion fell short of the $2.74 billion consensus forecast.
Organic net sales decreased 2% YoY, driven by declines in the Snacks segment and lower net price realization.
"Second quarter earnings were in line with our expectations despite the dynamic operating environment," said CEO Mick Beekhuizen. "Given the softness in some of our snacking categories, the anticipated sequential top-line improvement did not materialize during the quarter, and we now have a more muted second half expectation."
Campbell lowered its fiscal 2025 adjusted earnings guidance to $2.95-$3.05 per share, down from its prior outlook of $3.12-$3.22 and below the $3.12 analyst consensus. The company now expects organic net sales to be in the range of down 2% to flat for the full year.
The disappointing revenue and reduced outlook sparked a 5.48% drop in Campbell’s stock price following the earnings release. Investors appear concerned about weakening demand trends and the company’s ability to drive growth in the current consumer environment.
Campbell maintained its quarterly dividend of $0.37 per share. The company generated $737 million in operating cash flow year-to-date and returned $283 million to shareholders through dividends and share repurchases.
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