Campbell Soup outlook disappoints Wall Street

10 個月前

STORY: Shares of Campbell Soup fell to a near 1-year low on Wednesday, after the company released an earnings outlook that disappointed Wall Street.

The maker of Chunky soup and Pepperidge Farm cookies maintained its annual forecasts despite posting a quarterly profit that topped expectations due to higher prices.

One analyst told Reuters investors were likely looking for it to hike its forecasts but said he thinks the company is being reasonably conservative.

Packaged food companies including Campbell, Kraft Heinz and Kellogg have been raising prices to offset higher costs from supply chain snags and the Russia-Ukraine war.

Campbell’s average selling price rose 12% in the quarter. However, a 7% decline in total volumes signaled that Americans pressured by higher prices were moving away to private-label products that are more affordable.

The company’s CEO said in a post-earnings call that volumes were also impacted by retailers cutting back on rebuilding inventory compared to last year, when they battled a shortage in products due to supply chain disruptions.