Campbell Soup Co.
), the manufacturer of high-quality foods and simple meals, is
slated to report second-quarter fiscal 2014 results on Feb 14,
2014. In the last quarter, it posted a negative surprise of
24.1%. Let us see how things are shaping up for this
Factors this Past Quarter
Campbell Soup posted lower-than-expected first-quarter fiscal
2014 results. The company's quarterly results were primarily
suffered due to the late Thanksgiving holiday, weakness in core
business categories, higher marketing expenses and recall of Plum
Organics pouch products. Disappointed with its first-quarter
performance, Campbell Soup lowered its adjusted earnings growth
guidance range for fiscal 2014 to 2%-4% from 3%-5% forecasted
Our proven model does not conclusively show that Campbell Soup
is likely to beat earnings estimates this quarter. This is
because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here, as you will see below.
Negative Zacks ESP:
ESP for Campbell Soup is -2.74%. This is because the Most
Accurate estimate stands at 71 cents, while the Zacks Consensus
Estimate is pegged at 73 cents.
Zacks Rank #4 (Sell):
Campbell Soup's Zacks Rank #4 when combined with a negative ESP
makes surprise prediction difficult. We caution against stocks
with a Zacks Ranks #4 and 5 (Sell-rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements:
ConAgra Foods, Inc.
) with anEarnings ESP of +1.54% and a Zacks Rank #2 (Buy).
J&J Snack Foods Corp.
) with an Earnings ESP of +2.67% and a Zacks Rank #2 (Buy).
) with an Earnings ESP of +2.13% and a Zacks Rank #3 (Hold).
CABELAS INC (CAB): Free Stock Analysis Report
CONAGRA FOODS (CAG): Free Stock Analysis
CAMPBELL SOUP (CPB): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
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