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UPDATE 2-Campbell Soup says 2018 to remain difficult, warns of sales drop

* Q4 rev $1.66 bln vs est of $1.69 bln

* Q4 EPS of 52 cents vs est of 55 cents

* Expects 2018 adj EPS to be $3.04-$3.11 vs est of $3.19

* Expects 2018 sales to be flat to down 2 pct (Adds analyst comment, details, shares)

Aug 31 (Reuters) - Campbell Soup Co posted quarterly earnings and revenue below Wall Street estimates and warned that fiscal year 2018 sales could decline as more consumers avoid processed foods and buy their groceries online.

Shares of the maker of packaged goods brands, including Pepperidge Farm snacks and Prego pasta sauce, fell 5 percent to $47.80 before the bell on Thursday. Rival General Mills' shares were also down one percent.

Chief Executive Denise Morrison said in a statement that the operating environment for the packaged foods industry remains challenging and added that sales growth remains tough.

Food retailers stocking up on fewer soup products and weak demand for the company's V8 vegetable juices also hurt sales at Campbell's Americas Simple Meals and Beverages unit in the quarter. Sales at the unit, the largest contributor to revenue, fell 3 percent.

"The quality of the quarter was soft, in our view...the quarter would have been much worse had CPB not pulled back on marketing," J.P. Morgan analyst Ken Goldman said in a note.

Campbell expects fiscal year 2018 sales to be flat to down 2 percent, which translates to $7.89 billion to $7.73 billion, and adjusted profit to be $3.04 to $3.11 per share.

Analysts on average had expected revenue of $8.01 billion and earnings of $3.19 per share, according to Thomson Reuters I/B/E/S.

The company reported net income of $318 million, or $1.04 per share, in the quarter ended July 30, compared with a loss of $81 million, or 26 cents per share, a year earlier.

Excluding certain items, the company earned 52 cents per share.

Net sales fell 1.4 percent to $1.66 billion.

Analysts on average had expected a profit of 55 cents per share and revenue of $1.69 billion. (Reporting by Gayathree Ganesan in Bengaluru; Editing by Shounak Dasgupta)