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Campbell (CPB) Q1 Earnings: What's in Store for the Stock?

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Campbell Soup Company (CPB - Free Report) is slated to report first-quarter fiscal 2017 results on Nov 22. Last quarter, the company posted a negative earnings surprise of 8%. However, it has outperformed the Zacks Consensus Estimate by an average of 4.3% in the trailing four quarters. Let’s see how things are shaping up for this announcement.

CAMPBELL SOUP Price and EPS Surprise
 

CAMPBELL SOUP Price and EPS Surprise | CAMPBELL SOUP Quote

Factors Influencing This Quarter

Campbell’s exposure to the international markets keeps it prone to currency fluctuations. In fact, the company’s results were somewhat impacted by adverse foreign currency translations in the last reported quarter. Though management expects this headwind to have a nominal impact on the company’s fiscal 2017 performance, it still remains a hurdle. So, let’s see if Campbell’s focus on its strategic initiatives like portfolio reorganization and cost-cutting efforts can help it overcome these obstacles. Hence, we prefer to be on the sidelines and see what’s in store for Campbell’s upcoming results.

Earnings Whispers

Our proven model does not conclusively show that Campbell is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:

Zacks ESP: Campbell currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 95 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Campbell currently carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks that Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Hibbett Sports Inc. is expected to report earnings on Nov 18 and currently has an Earnings ESP of +4.00%. The stock holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Burlington Stores, Inc. (BURL - Free Report) , with a Zacks Rank #3 (Hold) and an Earnings ESP of +6.06%, is expected to release earnings on Nov 22.

Dollar Tree, Inc. (DLTR - Free Report) , with a Zacks Rank #3 and an Earnings ESP of +1.28%, is expected to release earnings on Nov 22.

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