Shares of Campbell Soup (CPB) are hovering dangerously close to new 52-week lows on Tuesday.

The company missed on earnings per share and revenue estimates and Campbell Soup stock is down 8.1% to $45.88 as a result. Ultimately, year-over-year sales fell 1.8%, while earnings fell 3%.

Higher carrot costs were one reason behind the miss, according to management. "I have a hard time really wrapping my head around the idea that it was just carrots," TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment.

Campbell actually has a bigger issue than rising input costs, and "I think it may be the product line," Cramer reasoned. He pointed out that organic sales fell 2% and U.S. soup sales slumped 9%. The center aisles of the grocery store are "still awful," Cramer said and it's clear that consumers aren't clamoring for canned soup.

But because Kraft Heinz (KHC) has been in the market for a large M&A deal, many of these stocks seem to have a bid underneath them in hopes they will be acquired. That's why Campbell Soup stock had been levitating higher prior to this earnings report, explained Cramer, who also manages the Action Alerts PLUS charitable trust portfolio

"This is a terrible report," he added, concluding that "Campbell Soup is 'mmm,' 'mmm' bad."

More of What's Trending on TheStreet:


At the time of publication, Cramer's Action Alerts PLUS had no position in any security mentioned.

More from Stocks

Time to Buy Nike? Morgan Stanley Says So Ahead of Earnings

Time to Buy Nike? Morgan Stanley Says So Ahead of Earnings

How Reduced China Import Tariffs Would Impact U.S.-Made Autos

How Reduced China Import Tariffs Would Impact U.S.-Made Autos

Dow Trades Lower as Trump, Democratic Leaders Fight Over Border Security

Dow Trades Lower as Trump, Democratic Leaders Fight Over Border Security

Verizon to Take Massive Charges From Employee Buyouts, Weakness at Oath

Verizon to Take Massive Charges From Employee Buyouts, Weakness at Oath

Should You Stay Away From Tech ETFs? Why Jim Cramer Is Sticking to Stocks

Should You Stay Away From Tech ETFs? Why Jim Cramer Is Sticking to Stocks