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Investing.com – Campbell Soup Company (NYSE:CPB) stock traded 2.8% higher Wednesday after the company reaffirmed its full-year guidance even as it missed analysts’ revenue estimates for the second quarter.
Net sales in the quarter ended January 30 fell 3% to $2.2 billion on lower volumes, offset by higher prices. President and CEO Mark Clouse attributed this to a “difficult comparison” and other factors, including labor and supply constraints, made tougher by the Omicron surge.
Sales in the same quarter a year ago rose, owing to a jump in at-home food consumption during the pandemic.
Organic net sales, which exclude the impact from the sale of the Plum baby food and snacks business, fell 2%, the company said.
“However, heading into the second half of the fiscal year, we are seeing labor availability and service levels improve, better mitigation of inflation with pricing, and strong levels of demand all underpinning our confidence in our delivery of full-year guidance,” he said in a statement.
The company is expecting the second half to be better as price hikes come into effect fully while supply and labor conditions improve.
Campbell expects its current year sales to be flat or to fall 2% in the worst-case scenario. Organic net sales could rise by 1% or fall as much, according to the company’s estimates. Adjusted profit per share for full-year 2022 is seen flat or falling by a maximum 4%.
Adjusted profit per share in the second quarter fell 16% to 69 cents but beat estimates.
