Soup Stock Blows Cold After Weak Outlook

Author

Adam Garcia
March 05, 2025

A canned soup giant’s stock is falling after lowering its full-year sales and profit outlook, an RV manufacturer is also slipping after revising its outlook downward, and a tech stock is soaring on a new $45-million order. Here’s what moving the markets today.

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What to Watch

Earnings:

  • Marvell Technology, Inc. (MRVL): Aftermarket

  • Veeva Systems Inc. (VEEV): Aftermarket

  • Zscaler Inc. (ZS): Aftermarket

  • MongoDB, Inc. (MDB): Aftermarket

  • Landbridge Company LLC (LBD): Aftermarket

Economic Reports:

  • ADP employment [Feb]: 8:15 a.m.

  • S&P final U.S. services PMI [Feb]: 9:45 a.m.

  • Factory orders [Jan]: 10:00 a.m.

  • ISM services [Feb]: 10:00 a.m.

Packaged Foods

Campbell’s Shares Falling 5% After Lowering Sales and Profit Outlook

Campbell’s Co. (NYSE: CPB) revised its full-year sales and profit forecasts downward, citing weaker demand for its snack products in a competitive market.

The company’s stock is down 5% in premarket trading.

As inflation-driven price hikes weigh on consumer spending, Campbell’s and other packaged food giants, including PepsiCo, have faced increased pressure from budget-conscious shoppers turning to lower-cost store brands.

For fiscal 2025, Campbell’s is now expecting net sales to grow between 6% and 8%, down from its previous estimate of 9% to 11%.

The updated projection does not take into account potential U.S. import tariffs or possible retaliatory measures from other countries.

CEO Mick Beekhuizen acknowledged that anticipated sales improvements did not materialize in some snack categories, prompting a more conservative outlook for the remainder of the fiscal year.

Campbell’s also reduced its adjusted earnings per share forecast to a range of $2.95 to $3.05, down from the previous expectation of $3.12 to $3.22.

For the quarter ended January 26, net sales are up 9% to $2.69 billion, slightly below analyst projections of $2.74 billion.

On an adjusted basis, the company reported earnings of 74 cents per share, surpassing the expected 72 cents.

Freight Platform

Full Truck Alliance Reports Lower Q4 Profit but Sees Strong Revenue Outlook

Chinese digital freight platform Full Truck Alliance (NYSE: YMM) projects revenue growth for the first quarter despite reporting lower profits for the fourth quarter.

The company’s stock is up 7% in premarket trading.

For the first quarter, Full Truck Alliance expects total net revenue between RMB2.63 billion ($362 million) and RMB2.68 billion ($369 million), reflecting a year-over-year increase of 15.9% to 18.1%.

The company’s board is also introducing a semi-annual dividend policy, starting in 2025, with a planned total cash dividend of approximately $200 million for the year.

The first approved dividend amounts to RMB0.035 ($0.0048) per ordinary share, or RMB0.69 ($0.096) per American depositary share (ADS), totaling around $100 million.

The dividend will be paid on April 18 to shareholders recorded as of April 7.

Additionally, Full Truck Alliance is extending its share buyback program.

Originally set to expire in March 2024, the program now allows for repurchases of up to $300 million through March 12, 2025.

The board has further approved an extension permitting up to $200 million in additional repurchases beyond that date.

For the fourth quarter, net income is down to RMB558.46 million ($76.8 million) from RMB584.09 million ($80.39 million) a year earlier.

Adjusted earnings reached RMB1.035 billion ($142.4 million), while revenue surged 31.9% to RMB3.174 billion ($436.85 million).

The company plans to fund these repurchases using its existing cash reserves.

(Exchange rate: 1 Chinese Yuan = 0.14 U.S. Dollar)

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RV Manufacturing

Thor Industries Plunging on Lower Full-Year Outlook as Market Pressures Persist

Thor Industries (NYSE: THO) reported below-expectation second-quarter earnings today, despite beating its revenue forecasts.

The company's stock is plunging more than 4% in premarket trading.

For the quarter ended January 31, Thor posted a per-share loss of $0.01, missing the anticipated earnings of $0.08 per share.

Despite this, revenue reached $2.02 billion, surpassing the projected $1.97 billion.

However, net sales are down 8.6% year-over-year, primarily due to weaker shipments in its North American Motorized and European RV divisions.

The company’s gross profit margin is also down slightly to 12.1% from 12.3% in the same period last year.

CEO Bob Martin highlighted that the company’s performance is in line with internal projections, noting slight but promising improvements in recent retail events.

Thor also revised its fiscal 2025 outlook, tightening its revenue expectations to between $9.0 billion and $9.5 billion, down from the prior range of $9.0 billion to $9.8 billion.

Additionally, the company lowered its diluted EPS forecast to $3.30 to $4.00, compared to the earlier estimate of $4.00 to $5.00.

The RV manufacturer pointed to ongoing economic challenges and difficult market conditions in key segments as the primary reasons for its adjusted guidance.

Clothing Retail

Abercrombie & Fitch Shares Slump On Slower Sales Growth Projections

Abercrombie & Fitch (NYSE: ANF) projects annual sales growth below market expectations, citing weak consumer demand for higher-priced clothing.

The clothing retailer’s stock is down about 7% in premarket trading.

Persistent inflation and economic uncertainty have dampened consumer spending on discretionary items, with February seeing particularly slow sales.

The company also noted the potential impact of tariffs introduced in February on imports from China, Mexico, and Canada.

For the fiscal year, Abercrombie & Fitch expects net sales to increase between 3% and 5%, falling short of analysts' projected 6.77% growth.

Additionally, the company forecasts an operating margin of 14% to 15%, factoring in the tariff-related costs.

Despite the softer outlook, the company announced a significant $1.3 billion stock repurchase program, signaling confidence in long-term performance.

Movers and Shakers

ARB IOT Group Limited [ARBB] - Last Close: $0.52

ARB IOT Group Limited is a technology solutions provider specializing in IoT and AI-driven computing systems.

Its shares are surging 75% in premarket trade after securing a $45-million order to supply 500 ARB-222 AI servers to Malaysian tech firm Gajah Kapitalan.

My Take: The AI boom is driving demand for powerful computing infrastructure, so this deal could be a big milestone for ARB. However, this is a tiny stock with high volatility, so make sure you hedge your bets before investing here.

Chimerix, Inc. [CMRX] - Last Close: $4.96

Chimerix, Inc., is a biotech company developing novel therapies for life-threatening diseases, including cancer and infectious diseases.

Its shares are rising 70% premarket after Jazz Pharmaceuticals (JAZZ) announced a $935 million all-cash acquisition. The deal, valued at $8.55 per share, offers a 72% premium to Chimerix’s previous close and grants Jazz access to its experimental brain tumor treatment.

My Take: This buyout is a huge win for Chimerix investors, given its 313% rise in the past year. However, Jazz’s ability to commercialize the therapy successfully will determine the real long-term impact. Keep a close watch as the acquisition progresses.

Astronics Corporation [ATRO] - Last Close: $19.96

Astronics Corporation is a leading provider of advanced technologies for the aerospace, defense, and electronics industries.

Its shares are up 13% in early trading following a strong Q4 earnings report. The company posted adjusted EPS of $0.48, crushing estimates of $0.28, and sales of $208.5 million, beating forecasts of $194.9 million.

My Take: Its 2025 revenue guidance of $820M-$860M is also positive. However, the company has struggled with profitability in recent quarters, so it might be best to adopt a wait and watch approach here.

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Everything Else

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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