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Campbell's Soup stock falls on Q3 earnings beat, price hikes

More American consumers are reportedly turning towards private-label goods. Yahoo Finance Live's Julie Hyman and Brad Smith check out shares of Campbell's Soup Company as the food brand reports its latest earnings beat while contending with price hikes and dipping demand.

Video transcript

JULIE HYMAN: What about soup though? I don't know. Campbell's Soup stock dipping today after fiscal year earnings guidance fell below Wall Street expectations and shares down 8%. The packaged food companies report shows that consumers may be balking at recent price hikes and turning to private label soups instead. Imagine that. I mean, it's not soup season per se unless you're going for a nice gazpacho, which I don't believe Campbell-- I don't believe comes in can last time I checked, unless you're just not heating the classic tomato soup.

BRAD SMITH: Just pour it out the can.

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JULIE HYMAN: [INAUDIBLE] Campbell. But as I look at, among other things, the forecast that the company is coming out with for the full year, it is unchanged. And analysts were hoping for a little bit more on that front. So that's another thing that's not helping matters this morning.

BRAD SMITH: Yeah, I was tracking this one pre-market as well. I mean, this is a company that allocates about 5% to 7% of my brain, good Camden, New Jersey-based company. And I think for what we have seen them cite in this most recent quarter, it was some of the product mix as well.

The company's CEO saying that the year to date results and execution give them confidence in the ability to deliver on their full year guidance, so that a good thing perhaps that investors can try to hold fast to, with adjusted EPS tracking currently towards the upper end of their guidance range here. But it was particularly interesting to note some of the areas where they did see some of the volume mix shifts and that I think some of the investors might have been latching onto, as well as the margins. The gross profit margin, that's awesome slippage year over year in comps as well.

JULIE HYMAN: Yeah.

BRAD SMITH: Also, our Brian Sozzi, he's going to be talking to Campbell's Soup Company CEO Mark Clouse. That's tomorrow, 9:35 AM Eastern time. We're going to have all of that discussion plus the results, the state of the consumer and much more. And perhaps we'll put the gazpacho question to him as well.