Campbell's Slashes Dividend 36%, Guides FY27 Sales Down 2-4%
CPB sits 22% above its 52-week low of $19.555.
Summary
Campbell's issued fiscal 2027 guidance well below expectations, forecasting net sales to decline 2-4% versus the consensus estimate of a 0.8% drop. The company also cut its quarterly dividend by more than a third to $0.25 per share from $0.39 to accelerate debt reduction. Q4 net sales fell 8% to $2.1 billion, slightly worse than the 7.6% decline analysts expected, and organic sales fell 1%. Management cited weak demand for pricier snacks and pantry items as lower-income consumers trade down to value brands. The company expects $500 million in cost savings by 2030 and guided adjusted EPS of $2.17, above the $1.86 consensus, reflecting margin benefits. This follows the Q3 earnings report in June that showed a 4% sales drop and the recent shelf registration filing in August.
At the time of this announcement, CPB was trading at $23.94 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $7.1B. The 52-week trading range was $19.56 to $34.18. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.