Campbell Plunges as Bleak Outlook Follows Blow From Buffett
- Soup maker is caught up in broad food-industry sales slump
- Disappointing forecast and poor results fuel stock decline
A can of Campbell Soup Co. SpaghettiOs brand pasta is arranged for a photograph in Tiskilwa, Illinois, U.S., on Thursday, May 18, 2017. Campbell Soup Co. is scheduled to release earnings figures on May 19.
Photographer: Daniel Acker/BloombergCampbell Soup Co. shares plummeted after the packaged-food company posted disappointing earnings and delivered a weaker-than-expected forecast, bringing more evidence that an industrywide slump is here to stay.
The tepid outlook follows another disappointment for shareholders on Wednesday, when Warren Buffett threw cold water on the idea that Kraft Heinz Co. would buy a company like Mondelez International Inc. Investors interpreted the remarks as a bearish signal for industry consolidation in general, meaning it’s less likely that a takeover of Campbell will provide a payday for them.