Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Campbell Slumps As Inflation Hurts Profit Forcing Weaker Guidance

Published 06/09/2021, 08:31 AM
Updated 06/09/2021, 08:33 AM
© Reuters.

By Dhirendra Tripathi

Investing.com -- Shares of Campbell Soup (NYSE:CPB) plunged by more than 7% in Wednesday’s premarket trade as inflation ate into its quarterly profits forcing it to lower its guidance for the full year.

The company warned of “continued margin pressure related to its transition out of the COVID-19 environment.”

Expensive raw material and higher supply chain costs pulled down Campbell’s profit for the third quarter ended May 2 by nearly 5% from a year ago to $160 million.

Net sales were also lower, by 11.3% at $1.98 billion.

The company now expects its net sales for fiscal 2021 to fall by 3.5% to 3% as against the 3.5% to 2.5% fall forecast earlier.

Adjusted earnings per share is seen between $2.90 and $2.93 per share, down from the previously estimated $3.03-$3.11 range earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.