Campbell Soup lowers FY24 adjusted EPS view to $3.07-$3.10 from $3.09-$3.15

Consensus $3.03. Raises FY24 revenue view to up 3%-4% from down 0.5% to up 1.5%, consensus $9.7B. Raises FY24 adjusted EBIT view to up 6.5%-7% from up 3%-5%. The company said, “The company is updating its fiscal 2024 full-year guidance previously provided on March 6, 2024, to reflect the expected performance of the base business and the impact of the recent acquisition. Full-year reported net sales growth is expected to be in the range of 3% to 4% driven by the incremental impact of the Sovos Brands acquisition. Organic net sales growth is tracking to the midpoint of the updated range of approximately 0% to down 1%, reflecting the current pace of consumer recovery. At the midpoint, this represents about half a point lower than the bottom end of the 0% to 2% organic net sales growth range indicated on the company’s second quarter earnings call. Full-year adjusted EBIT growth for the combined business is expected to be approximately 6.5% to 7% reflecting the partial year contribution of the acquisition, inclusive of integration savings, as well as base business performance including lower adjusted marketing and selling expenses and favorable price realization, productivity and cost savings more than offsetting inflation and other supply chain costs. Full-year adjusted earnings per share growth for the combined business is expected to be approximately 2% to 3% to $3.07 to $3.10, compared to $3.00 in the prior year. This includes expected dilution from the Sovos Brands acquisition of between $0.01 and $0.02 per share. The company expects to build momentum into the fourth quarter, with continued stabilization of year-over-year volume growth, double-digit growth of both fourth quarter adjusted EBIT and adjusted earnings per share, and continued momentum on the integration of Sovos Brands.”