Wall Street is suddenly salivating over embattled Campbell Soup.
Shares of the Camden, NJ-based soupmaker soared 8.1 percent in early trades Tuesday before retreating slightly — closing up 5.5 percent for the day, at $40.55 — after reporting better-than-expected results for its fiscal first quarter.
Tuesday’s jump comes as the red-hot battle between the soupmaker and activist investor Dan Loeb is expected to come to a head at Campbell’s shareholder meeting next week.
Loeb’s Third Point seeks five seats on Campbell’s board to revitalize the brand, and has accused the incumbent board of being “asleep at the switch.”
The vote is expected to be “close” even though descendants of condensed soup inventor John Dorrance — with a stock block comprising 41 percent of shares — already pledged to vote against Loeb’s slate.
But last week Loeb gained a powerful ally as influential proxy advisory firm Institutional Shareholder Services issued a “very strong statement” supporting Loeb, a source close to the activist told The Post.
“Campbell is acting like they have enough votes to just barely win. I think in the end it will be a very close vote, with the [incumbents] winning,” the source said.
Campbell reported adjusted earnings of 79 cents a share — down 14 percent from the year-ago quarter — but well above analyst-tempered estimates of 70 cents a share.
“We are on track with our plans and are encouraged by the progress we are making against the significant actions we announced on August 30th to simplify, focus and optimize our portfolio,” interim Chief Executive Keith McLoughlin said in a statement Tuesday.
Campbell has been badly bruised in recent years as consumer tastes shifted away from packaged foods. Former Chief Executive Denise Morrison abruptly left the company in May following a spate of poor performance, and McLoughlin admitted to investors in August that the company “lost focus.”
After a three-month review, Campbell announced cost-cutting measures in August and said it plans to sell its fresh foods and international foods business.
Loeb, who announced an activist stake in August, questioned the thoroughness of the review, initially believing that a full sale was the only viable option for the company.
Since then the hedgie has pivoted, suggesting measures such as Campbell refreshing its core soup brand with better packaging and ingredients.
Campbell remained steadfast in its approach Tuesday and reiterated several times that it expects 2019 to be a “transition year.”
“We’re getting traction, we’re seeing early signs of progress for the turnaround, but there is still a ton of work in front of us,” McLoughlin said during a call with analysts Tuesday.
Reps from Third Point did not immediately respond to requests for comment.
