While reporting financial results for the third quarter on Wednesday, Campbell Soup Co. (CPB) trimmed adjusted earnings and net sales guidance for the full-year 2021, to reflect third-quarter results and the impact of the sale of the Plum baby food and snacks business.
For fiscal 2021, the company now projects adjusted earnings in a range of $2.90 to $2.93 per share on net sales decline of 3.5 to 3.0 percent from last year’s net sales of $8.69 billion, implying sales between $8.39 billion and $8.43 billion, with organic net sales decline of 1.2 to 0.7 percent.
Previously, the company expected adjusted earnings in the range of $3.03 to $3.11 per share on net sales decline of 3.5 to 2.5 percent from last year’s net sales of $8.69 billion, implying sales between $8.39 billion and $8.47 billion, with organic net sales decline of 1.5 to 0.5 percent.
On average, analysts polled by Thomson Reuters expect the company to report earnings of $3.07 per share on net sales of $8.43 billion for the year. Analysts’ estimates typically exclude special items.
For the fourth quarter, the company said it expects continued margin pressure related to its transition out of the COVID-19 environment, and more pronounced inflation while pricing actions take hold in the beginning of fiscal 2022.
The Board of Directors also authorized a new anti-dilutive share repurchase program of up to $250 million to offset the impact of dilution from shares issued under the company’s stock compensation programs. The company’s March 2017 strategic share repurchase program remains suspended.
Campbell said it remains on track to deliver annualized savings of $850 million by the end of fiscal 2022.
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