Campbell Soup Company
) is scheduled to report fourth-quarter fiscal 2014 results on Sep
8. Last quarter, this manufacturer of branded convenience food
products posted a positive earnings surprise of approximately 5.1%.
Let's see how things are shaping up for this announcement.
Factors Influencing the Upcoming Results
Though the company concluded the last quarter with
better-than-expected bottom-line results, its margins remain under
pressure due to persistent inflationary cost situation and
unfavorable foreign currency translations. Earlier, the company had
stated that the aforementioned factors will continue to impact its
results for the rest of fiscal 2014.
Therefore, it had lowered its fiscal 2014 earnings guidance
range. Campbell now expects adjusted earnings growth to be at the
lower-end of previously projected range of 2%-4% or $2.53-$2.58 per
share. Thus we remain apprehensive about the company's performance
in the upcoming quarter.
Our proven model does not conclusively project Campbell as
likely to beat earnings this quarter. A stock needs to have both a
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates. However,
this is not the case here due to the following factors:
ESP for Campbell is 0.00% since the Most Accurate estimate stands
at 49 cents per share, which is in line with the Zacks Consensus
Campbell's Zacks Rank #3 (Hold) increases the predictive power of
ESP. However, we also need to have a positive ESP to be confident
of an earnings surprise. We caution against stocks with a Zacks
Rank #4 and 5 (Sell-rated stocks) going into earnings announcement,
especially when the company is undergoing negative estimate
Other Stocks to Consider
Here are some companies you may want to consider as our model
shows they have the right combination to post an earnings beat:
Limoneira Company (
) has an Earnings ESP of +12.50% and a Zacks Rank #2 (Buy).
Palo Alto Networks, Inc. (
) with an Earnings ESP of +9.09% carries a Zacks Rank #3.
Calavo Growers Inc. (
) holds an Earnings ESP of +8.70% and carries a Zacks Rank #3.
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CAMPBELL SOUP (CPB): Free Stock Analysis Report
PALO ALTO NETWK (PANW): Free Stock Analysis
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CALAVO GROWERS (CVGW): Free Stock Analysis
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