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Investing.com – Campbell Soup (NYSE:CPB) shares fell 2.5%, to $45.77, in premarket trading on Wednesday after warning that net sales would fall this year as Covid-19 vaccinations spread and customers return to restaurants rather than pantry stocking.
Second quarter revenue of $2.28 billion fell short of expectations. Analysts tracked by Investing.com forecast sales of $2.3 billion.
Campbell sales surged last year as Covid-19 stay-at-home orders forced consumers to stock up on snacks and soups more than usual. But that might not continue at the same pace this year. The company projects revenue to fall between 2.5% and 3.5%.
The New Jersey-based company’s adjusted earnings per share of 84 cents did top the 83 cent per share estimate for the second quarter.
Packaged foods makers like Campbell benefited immensely from rising demand for their ready-to-eat or ready-to-cook meals as restaurants mostly remained shut to in-person dining last year.
The maker of Goldfish crackers and Cape Cod potato chips expects annual earnings growth as its cost-saving measures pay off. It sees EPS rising by 3% to 5% for the full year 2021.
In the second quarter of fiscal 2021, Campbell achieved just over $20 million in savings under its multi-year cost savings program, inclusive of Snyder’s-Lance synergies, bringing total program-to-date savings to approximately $760 million. A company filing said it remains on track to deliver annualized savings of $850 million by the end of fiscal 2022.
