Campbell Soup First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Campbell Soup (NYSE:CPB) will unveil its latest earnings on Tuesday, November 20, 2012. Campbell Soup, with its consolidated subsidiaries, is a global manufacturer of convenience food products.

Campbell Soup Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 85 cents per share, a rise of 3.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 84 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 85 cents during the last month. Analysts are projecting profit to rise by 4.1% compared to last year’s $2.54.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting profit of 41 cents per share against a mean estimate of net income of 38 cents per share.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 27% to $127 million (40 cents a share) from $100 million (31 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 0.4% to $1.61 billion from $1.61 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 9.7% in revenue from the year-earlier quarter to $2.37 billion.

Stock Price Performance: Between August 21, 2012 and November 14, 2012, the stock price rose $1.57 (4.5%), from $34.81 to $36.38. The stock price saw one of its best stretches over the last year between February 13, 2012 and February 24, 2012, when shares rose for nine straight days, increasing 6.6% (+$2.08) over that span. It saw one of its worst periods between May 14, 2012 and May 23, 2012 when shares fell for eight straight days, dropping 5.9% (-$2.02) over that span.

Key Stats:

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. Net income fell in the first quarter of the last fiscal year, the second quarter of the last fiscal year and the third quarter of the last fiscal year before snapping that run with a profit increase in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 0.4% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.86 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.93 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 8.5% to $2.07 billion while assets rose 0.2% to $1.77 billion.

Analyst Ratings: There are mostly holds on the stock with 14 of 18 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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