The number of companies reporting profits this week begins the end-of-season decline before the next begins in mid-April. This does not mean that nothing is happening. There are a few biggies coming (Campbell Soup and Oracle) as well as new favorites (CrowdStrike and Rivian).
Major markets opened a little lower on Monday morning, but far from their pre-market lows. Crude oil, which was trading above $125 a barrel early in the morning, was last seen at around $118. Reports that the United States and its sanctions partners are considering banning the import of Russian oil have sent crude prices and oil producer shares much higher. Both moderated following reports of a meeting on Thursday between the Ukrainian and Russian foreign ministers in Turkey.
We’ve already seen four companies reporting quarterly results after markets close on Monday or before they open on Tuesday: Dick’s Sporting Goods, Lithium Americas, 908 Devices and Petco.
Here’s a look at five companies expected to report earnings after markets close on Tuesday or before they open on Wednesday.
Over the past 12 months, shares of Campbell Soup Co. (NYSE: CPB) have risen around 2.7%, while the consumer staples sector has gained around 22%. The company is not a growth stock, but it pays a solid dividend, and the dividend is paid entirely out of operating income. Even the net income is more than double the dividend payments. Campbell Soup reports earnings before markets open Wednesday.
Sentiment on the stock is mixed, with 12 out of 19 brokerages giving the stock a Hold rating. Only three have a strong buy or buy rating, and the rest rate the stock as a strong sell. At a recent price of around $45.00 per share, the stock is trading at its midpoint price target. At the high price target of $51, the upside potential is around 13.3%.
For the company’s second quarter of fiscal 2022, the consensus revenue estimate is $2.25 billion. That would be up less than 1% sequentially and down about 1.3% year-over-year. Adjusted earnings per share (EPS) is expected at $0.68, up 23.4% sequentially and down 20% year-over-year. For the full year, current estimates call for EPS of $2.78, down 6.6%, on sales of $8.42 billion, down less than 1%.
Campbell Soup shares are trading at 16.1 times expected 2022 EPS, 15.5 times estimated 2023 earnings of $2.90 and 14.7 times estimated 2024 earnings of $3.06 per share.
The stock’s 52-week range is $39.76-$52.23. The company pays an annual dividend of $1.48 (3.30% yield). Total shareholder return for the past year was negative 0.44%.