On Thursday morning, Campbell Soup Company (NYSE: CPB) announced its financial results for the fourth quarter of fiscal 2017. Both earnings and revenue missed expectation, and shares of the company dropped 4.5% to $48 per share before the bell on Thursday.
Net income for the fourth quarter was $318 million, or $1.04 per share, compared with a loss of $81 million, or $0.26 per share, for the same period last year. Excluding certain items, the company reported earnings of $0.52 per share, which missed analysts’ estimates of $0.55 per share.
Net sales is reported to 1.4% to $1.66 billion, which was below estimates of $1.69 billion. The drop in sales was partly hurt by retailers stocking fewer soups. Campbell Soup has been struggling as more and more consumers turned to organic and healthier foods, and made more purchases online.
“The operating environment for the packaged foods industry remains challenging due to shifting demographics, changing consumer preferences for food, the adoption of new shopping behaviors and the dynamic retailer landscape. In these times, sales growth remains a challenge,” Denise Morrison, Campbell’s President and Chief Executive Officer, said in the statement on Wednesday.
“Looking ahead to fiscal 2018, we expect the operating environment to remain difficult. We will continue to position Campbell for long-term growth by managing costs aggressively and re-investing a portion of those savings back in the business with a focus on our strategic imperatives of real food, digital and e-commerce, health and well-being, and snacking,” he said.