Aaron McDade
2 min read
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The Campbell's Company on Monday reported fiscal third-quarter results that topped estimates, but warned that its full-year profit would likely come in at the low end of its previous forecast.
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CEO Mick Beekhuizen said the company is seeing Americans cooking at home at the highest levels since early 2020, boosting its Meals & Beverages division.
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The company affirmed its full-year outlook but cautioned that adjusted EPS is likely to come in the low end of that range "due to the slower than anticipated recovery in the Snacks business."
The Campbell's Company (CPB) on Monday reported fiscal third-quarter results that topped estimates, but warned that its full-year profit would likely come in at the low end of its previous forecast.
The soup maker, which dropped "Soup" from its corporate name last year, reported adjusted earnings per share (EPS) of $0.73 on net sales of $2.48 billion, both above Visible Alpha consensus projections.
Sales at its Meals & Beverages segment led by its namesake soups and Rao's pasta sauce topped estimates at $1.46 billion, but those at its Snacks unit—which includes Goldfish crackers and Snyder's of Hanover pretzels—narrowly missed analysts' forecasts at $1.01 billion.
CEO Mick Beekhuizen said the company is seeing Americans cooking at home at the highest levels since early 2020, boosting its Meals & Beverages division. However, Beekhuizen—who took over on Feb. 1 after Campbell's last CEO left for an NFL job—said snacks performance was more "mixed," adding the company is "adjusting our plans to make sure we’re competitive across our full brand portfolio."
The company affirmed its full-year outlook of 6% to 8% sales growth and adjusted EPS of $2.95 to $3.05, a decline from $3.08 in fiscal 2024. However, Campbell's cautioned that adjusted EPS is likely to come in the low end of that range "due to the slower than anticipated recovery in the Snacks business," and said it doesn't include a potential headwind of 3 cents to 5 cents from tariffs.
Campbell's shares were up less than 1% soon before markets opened Monday. They entered the day down nearly 20% since the start of the year.
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