By Mackenzie Tatananni

Campbell's stock fell sharply in premarket trading Wednesday after the maker of packaged foods reported a fiscal second-quarter sales miss and slashed its fiscal-year outlook.

Campbell's reported adjusted earnings of 74 cents a share for the quarter ended Jan. 26, surpassing Wall Street's forecast for 72 cents. Net sales of $2.69 billion missed calls for about $2.74 billion, according to FactSet. The stock was down 5.5% to $38.20.

Campbell's CEO and President Mick Beekhuizen noted that an "anticipated sequential top-line improvement" did not pan out in the quarter, leading to a "more muted second-half expectation." Sales in the fiscal first quarter were $2.8 billion.

The company cut its fiscal-year guidance, saying it now expects adjusted earnings of $2.95 to $3.05 a share, down from a prior range of $3.12 to $3.22. Analysts were anticipating $3.31 a share.

The new forecast also calls for net sales growth between 6% and 8% versus a previous range of 9% to 11%. The company said its updated guidance includes the sale of the Noosa yogurt business, which was divested on Feb. 24, 2025.

Campbell's said its guidance doesn't "reflect any impact from potential import tariffs by the U.S. government and potential retaliatory actions taken by other countries, given the tariff and trade environments are uncertain and rapidly evolving."

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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March 05, 2025 07:55 ET (12:55 GMT)

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