10:01 AM EST, 03/05/2025 (MT Newswires) -- Campbell's (CPB), formerly known as Campbell Soup, on Wednesday reported fiscal second-quarter revenue that fell short of analysts' expectations, while the consumer packaged food firm cut its 2025 outlook.

Net sales rose to $2.69 billion during the three months ended Jan. 26 from $2.46 billion a year earlier, but trailed the FactSet-polled consensus of $2.74 billion. The 9% increase was driven by the Sovos Brands acquisition. Organic net sales decreased 2% due to "net price realization with flat volume/mix," Campbell's said.

Adjusted earnings dropped to $0.74 per share from $0.80 per share a year earlier, but beat the consensus of $0.72.

"Given the softness in some of our snacking categories, the anticipated sequential top-line improvement did not materialize during the quarter, and we now have a more muted second half expectation," Chief Executive Mick Beekhuizen said in a statement.

The company lowered its adjusted EPS guidance to between $2.95 and $3.05 for 2025 from its prior estimate of $3.12 to $3.22. Analysts are modeling for $3.12.

Full-year net sales growth is now expected at 6% to 8%, compared with the previous outlook of 9% to 11%. Organic sales are projected to be flat to down 2%, instead of growing as much as 2% under the prior guidance.

Campbell's shares dropped 2.6% intraday.

"We remain confident in our ability to successfully navigate the current consumer landscape with our portfolio of advantaged leadership brands, talented team and track record of execution," Beekhuizen said. "We have a strong foundation to deliver long-term sustainable, profitable growth and shareholder returns."

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