Campbell's gains on better-than-feared annual sales forecast

Campbells Co

03/09/2025 18:46

** Shares of packaged food company Campbell's CPB.O up about 5% at $33.17

** Company forecasts annual net sales in the range of flat to a 2% decline, compared with analysts' estimate of a 2.4% drop - data compiled by LSEG

** Posts Q4 adjusted earnings per share of 62 cents, beating the estimate of 56 cents

** CPB expects tariffs to make up about 4% of its cost of goods sold in FY 2026, plans to offset 60% of that through price hikes and cost savings

** Company raises cost-savings target by 50% to $375 million by fiscal 2028, from earlier target of $250 million last year

** "We think this (cost savings) will enable Campbell's to offset stepped-up tariff costs, primarily from steel and aluminum and to beef up brand investments," says Morningstar analyst Erin Lash

** Including session's moves, CPB shares down about 25% YTD

 (Reporting by Anshi Sancheti)

 ((Anshi.Sancheti@thomsonreuters.com))