02:54 PM EDT, 06/02/2025 (MT Newswires) -- Campbell's (CPB) said Monday it expects its fiscal 2025 adjusted earnings at the low end of its previously issued outlook range due to a slower-than-projected recovery in its snacks business.

The consumer packaged food company maintained its full-year adjusted earnings outlook of $2.95 to $3.05 a share. Analysts polled by FactSet are looking for $2.98. Assuming the current tariff rates remain intact, Campbell's said the estimated net incremental headwind would be up to $0.03 to $0.05. The company continues to expect full-year net sales growth between 6% and 8%.

Its fiscal third-quarter adjusted EPS fell to $0.73 from $0.75 a year earlier, but exceeded Wall Street's views for $0.65. Revenue rose 4% to $2.48 billion, surpassing analysts' $2.43 billion estimate. Meals and beverages sales jumped 15%, though snacks saw an 8% drop.

"The performance of our snacks business was mixed this quarter, reflecting continued category softness and an increasingly competitive environment," Chief Executive Mick Beekhuizen said in remarks prepared for an earnings conference call. "The pressure on snacking categories increased sequentially, which combined with heightened competitive activity resulted in year-over-year 3% lower in-market consumption."

Campbell's shares were up 0.5% in Monday late-afternoon trade. The stock has lost 18% in value so far this year.

The company attributed the quarterly net sales increase in part to its recent acquisition of Sovos Brands, while its organic net sales got a boost from favorable volume/mix, partially offset by planned unfavorable net price realization. Campbell's saw a "limited" impact from tariffs, Chief Financial Officer Carrie Anderson said.

China's Ministry of Commerce said Monday the US violated a preliminary trade deal reached between the two countries in Switzerland. On Friday, US President Donald Trump accused China of violating the pact. Last month, the US and China agreed to suspend most tariffs on each other's imports for 90 days. In April, Trump declared a 90-day pause on certain tariffs for countries that didn't retaliate to his reciprocal duties.

Campbell's is taking certain measures to minimize the overall impact of tariffs on business, Anderson said. These include "strategic inventory management, working in close partnership with our suppliers, pursuing alternative sourcing and product cost optimization, and, where absolutely necessary, consideration of surgical pricing actions," Anderson added.

The company has raised its cost savings outlook for the full year to $130 million from $120 million, according to Anderson. As of the end of the third quarter, Campbell's delivered about $110 million of savings under its $250 million cost savings program outlined in September, it said in a statement.

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