Campbell Soup Co. posted adjusted earnings per share of $0.39 for its fiscal fourth quarter, matching Wall Street estimates, but revenue declined to $2.1 billion, missing the $2.15 billion consensus by $50 million, or 2.3%. The company’s trailing 12-month revenue totaled $9.93 billion, a 2.9% year-over-year decrease.
Shares fell 9.6% in pre-market trading to $21.50, extending a broader decline that has seen the stock drop 23% year-to-date and nearly 35% over the past year. The company’s 52-week range stands at $20.31 to $37.22, while its dividend yield has risen to 7.2% following a reduction in payouts after 56 consecutive years of increases.
The company’s liquidity position remains constrained, with a current ratio of 0.87 and total debt at $7.34 billion.
For fiscal 2027, Campbell Soup expects organic net sales to decline approximately 3% at the midpoint of guidance, with adjusted EPS projected between $1.65 and $1.80. Gross margins are forecast to compress by 50 to 100 basis points for the full year, with the most significant pressure expected in the first quarter before stabilizing in the second half. Positive EPS is not anticipated until the fourth quarter.
First-quarter performance is expected to remain challenging, particularly in the snacks segment, where consumption is described as still below required levels. Meals and beverages showed relative strength, with cooking soups consumption up 6% to 7% and Rao’s continuing double-digit growth. However, flavored pretzels and chips underperformed.
Input cost inflation is projected at 5% to 6% for the year, with about 80% hedged in the first half and 50% in the second. Logistics inflation is expected to remain in double digits before easing later in the year. Interest expense is anticipated to rise by roughly $25 million year-over-year due to acquisition-related debt and refinancing needs.
Campbell Soup unveiled a new $500 million enterprise cost-savings program spanning fiscal 2027 through 2030, including $350 million in incremental savings. The initiative targets headcount reductions, procurement efficiencies, and supply chain optimization.
Pricing actions included modest increases of 4% to 5% across about 60% of the product portfolio, with positive price realization expected to materialize starting in the second quarter. The company also noted the first quarter following its acquisition of a 49% stake in La Regina, with the remaining 51% reflected as non-controlling interest and a second tranche payment due in May 2027.
