Canned soup products maker The Campbell's Company shares are trading higher in the premarket on Monday.

The company reported third-quarter sales growth of 4% year over year (Y/Y) to $2.475 billion, beating the analyst consensus estimate of $2.43 billion.

The benefit from the Sovos Brands acquisition drove the increase. Organic net sales rose 1% Y/Y to $2.3 billion, led by favorable volume/mix (+2%).

See Also: Jony Ive Once Said Steve Jobs Demanded Everyone At Apple Often Answer This Question

Meals & Beverages net sales in the quarter increased 15% Y/Y, driven by the benefit of the acquisition. Snacks net sales in the quarter decreased 8% Y/Y in the quarter.

Adjusted gross margin contracted 110 basis points to 30.1%. This is mainly due to cost inflation and other supply chain costs, and the impact of the acquisition.

Adjusted EBIT of $362 million increased by 2% Y/Y in the quarter, aided by the contribution of the acquisition.

Adjusted EPS of $0.73 beat the consensus estimate of $0.66.

The company held $143 million in cash and equivalents as of April 27, 2025. Operating cash flow for nine months totaled $872 million.

The company has paid $343 million in cash dividends and repurchased around $60 million in common stock year-to-date.

As of the end of the third quarter, Campbell had around $200 million remaining under its anti-dilutive share repurchase program. It also had about $301 million remaining under its September 2021 strategic share repurchase program.

The company delivered about $110 million of savings under the $250 million cost savings program announced in September 2024.

Campbell’s CEO Mick Beekhuizen said, “In Meals & Beverages, we are seeing improved consumption across all consumer income groups.”

Beekhuizen adds that consumers are “cooking at home at the highest levels since early 2020” and that Campbell’s is “adjusting” its plans to ensure it stays competitive.

FY25 Outlook: Campbell reiterated net sales growth of 6% to 8%  and adjusted EBIT growth of 3% to 5%.

The company reaffirmed adjusted EPS guidance of $2.95 – $3.05 vs. the consensus estimate of $2.98.

Excluding the impact of tariffs, the company now expects adjusted EBIT and adjusted EPS to be at the low end of the guided range owing to the slower-than-anticipated recovery in the Snacks business.

Assuming current tariffs hold steady, the company estimates that the net incremental headwind on adjusted EPS could be up to $0.03 to $0.05 per share.

Also, Campbell stated that FY25 comprises 53 weeks, and the extra week is estimated to add about 2 points of growth to reported net sales and adjusted EBIT, plus roughly $0.05 to adjusted EPS.

Price Action: CPB shares are up 2.14% at $34.77 premarket at the last check on Monday.

Read Next:

US Stocks Likely To Open Lower After A Solid May: ‘TACO’ Trade And ‘Run It Hot’ Optimism ‘Are Consensus At This Point,’ Says Expert

Image: Shutterstock