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By Dhirendra Tripathi
Investing.com — Shares of Campbell Soup (NYSE:CPB) plunged by more than 7% in Wednesday’s premarket trade as inflation ate into its quarterly profits forcing it to lower its guidance for the full year.
The company warned of “continued margin pressure related to its transition out of the COVID-19 environment.”
Expensive raw material and higher supply chain costs pulled down Campbell’s profit for the third quarter ended May 2 by nearly 5% from a year ago to $160 million.
Net sales were also lower, by 11.3% at $1.98 billion.
The company now expects its net sales for fiscal 2021 to fall by 3.5% to 3% as against the 3.5% to 2.5% fall forecast earlier.
Adjusted earnings per share is seen between $2.90 and $2.93 per share, down from the previously estimated $3.03-$3.11 range earlier.