What Happened?

Shares of packaged food company Campbell's (NASDAQ: CPB) jumped 4.8% in the afternoon session after the company reported second-quarter earnings that surpassed Wall Street expectations. The food company posted adjusted earnings of 62 cents per share, beating the average analyst estimate of 57 cents. Revenue for the quarter came in at $2.32 billion, roughly in line with the consensus forecast of $2.33 billion. Despite the earnings beat, the results were mixed as sales volumes fell 4% year-over-year. Looking ahead, Campbell's provided guidance for fiscal 2026 adjusted earnings per share between $2.40 and $2.55, with the midpoint of the range falling short of analysts' expectations.

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What Is The Market Telling Us

Campbell’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Campbell's is down 21.4% since the beginning of the year, and at $33.03 per share, it is trading 36.3% below its 52-week high of $51.89 from September 2024. Investors who bought $1,000 worth of Campbell’s shares 5 years ago would now be looking at an investment worth $680.61.

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