Campbell Soup Co.'s stock edges up as it beats Wall Street profit and revenue estimates

By Steve Gelsi

Food company warns its sales are tracking at lower end of forecast

Campbell Soup Co.'s stock rose Wednesday after the food company's revenue and adjusted second-quarter profit beat analyst estimates, but it said its 2024 performance is currently tracking at the low end of its sales guidance range.

Campbell Soup's (CPB) net income for the three months ended Jan. 28 fell to $203 million, or 68 cents a share, from $232 million, or 77 cents a share, in the year-ago quarter.

Adjusted profit of 80 cents a share beat the FactSet consensus estimate of 77 cents a share. Second-quarter revenue fell 1% to $2.46 billion, ahead of the analyst estimate of $2.44 billion.

Campbell Soup's stock moved up by 0.2% on Wednesday morning.

Looking ahead, Campbell reiterated its guidance from Aug. 31 for its expected financial performance in 2024 but added a note of caution.

"Full-year top-line growth rate is currently tracking to the lower end of the net sales guidance range, with possible upside should the pace of consumer recovery accelerate in the second half of the year," the company said.

In August, Campbell said it expected 2024 sales to either fall by about 0.5% or increase by up to 1.5%.

Analysts currently expect 2024 sales of $9.35 billion, down slightly from $9.36 billion in 2023.

Campbell said it expects to complete its acquisition of Sovos Brands Inc. in the week of March 11.

The company announced the $2.7 billion all cash deal for the parent of Rao's pasta sauces in August.

Prior to Wednesday's moves, the stock has fallen 18% in the last 12 months, while the S&P 500 SPX has gained 25%.

-Steve Gelsi

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03-06-24 1022ET

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