Campbell's guides fiscal 2027 EPS below estimates
Campbell's reported fiscal fourth-quarter adjusted EPS of 39 cents in line with estimates, but sales of $2.137 billion missed consensus and fiscal 2027 adjusted EPS guidance of $1.65 to $1.80 fell below the $1.85 estimate.
The Campbell's Company (NASDAQ: CPB ) stock fell Thursday after the company reported mixed fourth-quarter results and issued fiscal 2027 adjusted EPS guidance below estimates.
Campbell's Earnings Snapshot Adjusted EPS of 39 cents was in line with estimates.
Sales of $2.137 billion missed the $2.146 billion consensus estimate.
Sales fell 8% year over year, including a 7-percentage-point impact from the extra week in the prior year.
Organic sales declined 1%.
Restructuring charges rose to $52 million from $7 million a year earlier.
Campbell's has raised prices across about 60% of its portfolio, with an average increase of 4% to 5% to help offset persistent inflation and protect margins.
The company assumes a price elasticity of 1.5.
Management expects the increases to hurt volumes and net sales but provide a benefit to the bottom line, with stronger price realization beginning in the second quarter.
The company's adjusted gross profit fell 14% to $611 million.
Adjusted gross margin contracted 190 basis points to 28.6%, mainly due to inflation, tariffs and other supply-chain costs.
Its adjusted EBIT declined 25% to $242 million, primarily due to lower adjusted gross profit.
Full-year operating cash flow fell to $1 billion from $1.1 billion.
Capital expenditures declined to $361 million from $426 million.
The company returned $496 million to shareholders, primarily through dividends.
Campbell's Cuts Dividend By 36% Campbell's reduced its quarterly dividend to 25 cents per share from 39 cents.
That lowers the annualized dividend to $1 from $1.56, a 36% reduction.
The company said the move will help accelerate debt reduction.
The dividend is payable Nov.
2, 2026, to shareholders of record as of Oct.
1, 2026.
New Cost-Savings Plan Targets $500 Million Campbell's announced a new cost-savings program targeting $500 million in savings by fiscal 2030.
Actions already underway include plant closures and recently completed workforce reductions.
The company has identified about $350 million of incremental savings within the $500 million target.
Those savings include headcount reductions, procurement initiatives and supply-chain network optimization.
Procurement efforts will cover direct and indirect spending.
Campbell's expects headcount reductions and procurement initiatives to generate significant savings in the current and following fiscal years.
Under its previous $375 million PEAK program, Campbell's realized $225 million in savings through the latest fiscal year.
The remaining $150 million will roll into the new program.
Read Also: Top Wall Street Forecasters Revamp Campbell's Expectations Ahead Of Q4 Earnings Fiscal 2027 Outlook Falls Short For fiscal 2027, Campbell's expects adjusted EPS of $1.65 to $1.80, below the $1.85 analyst estimate.
The company expects organic net sales in Meals & Beverages to decline about 3% at the midpoint in the first quarter.
It expects performance to remain relatively consistent throughout the year.
Campbell's expects its Snacks business to reach a low point in the first quarter before improving modestly.
The company expects innovation, brand support and stronger execution to help drive the recovery.
Inflation is projected to remain a 5% to 6% headwind.
Logistics costs are expected to rise at a double-digit rate before improving toward year-end.