Campbell Soup Company's stock plummeted 5.06% during intraday trading on Thursday, reflecting significant negative investor sentiment following the company's latest financial update.
The sharp decline comes after Campbell's reported worse-than-expected second-quarter financial results, missing both earnings and revenue estimates. The company posted quarterly earnings of 51 cents per share, below the analyst consensus of 57 cents, with sales of $2.564 billion falling short of the expected $2.610 billion. More concerning to investors was the substantial reduction in fiscal 2026 guidance, with adjusted earnings per share now projected between $2.15 and $2.25, down from the previous range of $2.40 to $2.55 and below analyst expectations of $2.42.
Analysts pointed to continued weakness in Campbell's snacks segment as a primary driver of the disappointing performance, with soft consumption trends weighing on results. This prompted several analyst actions, most notably Wells Fargo's downgrade of Campbell's to "Underweight" from "Equal Weight" and a significant price target reduction to $20 from $28. Other firms including Morgan Stanley, RBC Capital, and Barclays also lowered their price targets, citing concerns about earnings risks, high leverage, and uncomfortable dividend payout ratios approaching 90%.
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