Shares of Campbell Soup (CPB) are sliding after reporting a 2% sales decline in snacks.

Yahoo Finance's Madison Mills and Brad Smith break down the company's latest earnings and what it signals about consumer recovery.

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This post was written by Melanie Riehl

Video Transcript

Other company name that we were watching in the consumer space.

Campbell Soup that company shares, after reporting third quarter net sales grew over 6% from a year ago, are moving to the downside here.

The company's nearly 15% jump in food and beverage sales, offsetting its 2% decline in snacks now interesting to see the meal and beverage sales coming in above estimates at 1.2 billion.

That is above the estimate of 1.2 billion snack sales, though, as I mentioned coming in a full percentage point down, the estimate was that they would be nearly a full percentage point up.

So that is clearly a big miss here.

And interesting to see that, given that again, this is a name that you do is kind of the opposite story of a dollar tree, because sometimes you expect Campbells to do well when people are switching to like a soup, for example, in tough economic times.

But maybe cutting back on snacks, transitioning over to meals Yeah, pantry staple here, a good Camden, New Jersey, company shout out to East Philadelphia, everybody the real ones now.

But all the end at the end of the day.

It really does come back to what they're looking at and some of the sequential volume improvement that they're trying to deliver here, plus organic net sales.

And that's what the company's president and CEO mar Klaus, who's a good friend of Yahoo Finance as well talked about in this most recent, uh, quarter here also gotta remember that they just finally were able to integrate sass soos brands.

I'm still gonna forever have questions about the pronunciation of that.

But they're also already saying that that's bringing some of the incremental growth as they continue to navigate the pace of consumer recovery, as you were mentioning a moment ago here.