Canned soup products maker The Campbell’s Company (NASDAQ:CPB) shares are trading lower in premarket on Wednesday.
The company reported second-quarter sales growth of 9% to $2.685 billion, missing the analyst consensus estimate of $2.74 billion.
The increase was driven by the benefit from the Sovos Brands acquisition. Organic net sales decreased 2% to $2.4 billion, driven by net price realization with flat volume/mix.
Meals & Beverages net sales in the quarter increased 21%, driven by the benefit of the acquisition. Snacks net sales in the quarter decreased 6%.
Gross margin contracted 110 basis points Y/Y to 30.5%. Adjusted EBIT of $372 million increased by 2% Y/Y.
Adjusted EPS of $0.74 beat the consensus estimate of $0.72.
Also Read: Gorilla Technology Signs $1.8B Agreement For Thailand’s Energy Transformation
The company held $829 million in cash and equivalents as of January 26, 2025. Operating cash flow for six months totaled $737 million.
The company has paid $227 million of cash dividends and repurchased common stock of approximately $56 million year-to-date.
As of the end of the second quarter, Campbell had about $205 million remaining under its anti-dilutive share repurchase program in addition to approximately $301 million remaining under its September 2021 strategic share repurchase program.
Through the second quarter, Campbell’s has delivered about $65 million of savings under the $250 million cost savings program announced in September 2024.
“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. As a result, we are updating our full-year guidance,” said President and CEO Mick Beekhuizen.
FY25 Outlook: Campbell sees net sales growth of 6% to 8% (prior view: 9% to 11%). Adjusted EBIT growth of 3% to 5% (previous view (9% to 11%).
The company expects Adjusted EPS of $2.95 – $3.05, down from the prior view of $3.12 – $3.22 and against the estimate of $3.13.
Meanwhile, the company’s guidance does not reflect any impact from potential import tariffs by the U.S. government and potential retaliatory actions taken by other countries.
Price Action: CPB shares are trading lower by 6.74% at $37.62 in premarket at last check Wednesday.
Read Next:
Photo: JHVEPhoto via Shutterstock.
免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。