Campbell falls after forecasting annual sales, profit below estimates

Shares of packaged food maker Campbell fell as much as 10.43% at $21.30 after the company forecast annual sales and profit below estimates, hurt by weak demand for its pricier snacks and pantry condiments amid macroeconomic uncertainties.

The company expects FY27 net sales to decline between 2% and 4%, compared with estimates of a 0.8% fall, according to data compiled by LSEG. It also sees annual adjusted EPS between $1.65 and $1.80, below estimates of $1.86.

Campbell reported an 8% fall in fourth-quarter revenue to $2.14 billion, versus estimates of a 7.6% decline to $2.15 billion. Quarterly adjusted EPS declined 37% to 39 cents.

The company also cut its quarterly dividend to 25 cents for Q4 from 39 cents previously to accelerate its debt-reduction efforts.

"CPB still has much to prove before investors gain more confidence, particularly given recent tracked channel trends for the company's salty snacks business," BNP Paribas Equity Research said.

As of the last close, the stock was down about 15% year to date.