NEW YORK (TheStreet) -- Cambell (CPB) shares were soup after the company failed to impress Wall Street with its first-quarter earnings. The stock was creamed 6.3% to $39.18, dragging several competitors in the food products space down with it. By 9:45 a.m. EDT, General Mills (GIS), manufacturer of Cheerios, had dropped 1.3% to $50.30, while Kellogg Company (K) was off 0.45% to $62.09.
The world's largest soup maker reported net income of 66 cents a share, compared to 84 cents in the year-ago quarter, on revenue 2% lower at $2.17 billion. Analysts surveyed by Thomson Reuters had hoped for 86 cents a share on $2.29 billion in revenue.
The weak results caused management to cut its full-year earnings forecast to between $2.53 a share and $2.58 a share from the previous guidance of $2.55 to $2.60.
"I'm disappointed in Campbell's first-quarter performance," said CEO Denise Morrison in a statement. "While we anticipated a challenging first quarter, the impact from retailer inventory movements was greater than anticipated and accounted for more than half of the decline in organic sales."
A later-than-usual Thanksgiving Day contributed to first-quarter weakness, pushing holiday sales into the second quarter. Campbell's core soups segment saw sales decrease 6%, while its beverages unit, including V8 juices, fell 8%.
TheStreet Ratings team rates Campbell Soup Co as a Buy with a ratings score of B. TheStreet Ratings team has this to say about its recommendation:
"We rate Campbell Soup Co (CPB) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."