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Investing.com -- Shares of Campbell’s Company dropped 5.3% premarket Wednesday after the company lowered its full-year fiscal 2025 guidance, citing weaker-than-expected performance in its snacking segment.
"Second quarter earnings were in line with our expectations despite the dynamic operating environment,” said Mick Beekhuizen, Campbell’s President and CEO. “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."
For the second quarter ended January 26, net sales rose 9% year-over-year to $2.7 billion, driven by the Sovos Brands acquisition. However, organic net sales declined 2%. Adjusted EBIT increased 2% to $372 million, while adjusted EPS fell 8% to $0.74.
Campbell revised its full-year fiscal 2025 EPS outlook to a range of $2.95-$3.05, down from its prior estimate of $3.12-$3.22. Analysts had expected $3.12.
The company now expects net sales growth of 6%-8%, down from the previous 9%-11% range, and adjusted EBIT growth of 3%-5%, lower than the prior 9%-11% forecast.
“We remain confident in our ability to successfully navigate the current consumer landscape with our portfolio of advantaged leadership brands,” Beekhuizen stated.
Despite cost savings initiatives, higher net interest expenses and weaker snacking category performance led to the downward revision, with the company acknowledging continued uncertainty in the broader consumer environment.