Earnings Previews: Campbell Soup, Okta, PureStorage, SentinelOne


The three major U.S. equity indexes closed lower Monday. The Dow Jones industrials dipped by 0.57%, the S&P 500 dropped 0.67% and the Nasdaq retreated 1.02%. The declines reflect a boost that arrived in mid-morning, only to evaporate slowly by the closing bell. Nine of 11 sectors ended the day with losses, led by tech (1.3%) and real estate (0.9%). The energy (up 1.5%) and utilities (up 0.3%) sectors posted the only gains. All three indexes were trading higher in Tuesday’s premarket, trying to erase Monday’s losses.

Before markets opened on Tuesday, Best Buy beat both top-line and bottom-line estimates and reiterated lackluster guidance given in July. The stock traded up by about 1.6%.

Baidu beat estimates on both the top and bottom lines. Shares traded up about 3.2% Tuesday morning.

After U.S. markets close on Tuesday, ChargePoint, Chewy, CrowdStrike, HP and HPE will be reporting quarterly results.

Here is a preview of four companies set to report results late Wednesday or early Thursday.

Campbell Soup

Over the past 12 months, shares of Campbell Soup Co. (NYSE: CPB) have risen by about 23.5%, while the consumer staples sector has sunk by more than 10%. For the year to date, Campbell Soup has added about 17.7%, while the S&P 500 has declined by 15.4%. The stock has been flirting with the 52-week high posted in early May and trades about 30% higher than its 52-week low posted in late October. On top of that, the maker of a variety of consumer food products also pays a solid dividend yield. The company reports quarterly results before markets open on Thursday.

Analysts are less than bullish on the shares. Of 18 brokerages covering the stock, 12 have a Hold rating while five rate the stock at Sell or Strong Sell. At a recent price of around $51.10 a share, the stock traded above its median price target of $48.00. At the high price target of $55.00, the upside potential is about 7.6%.

ALSO READ: 8 Safe ‘Strong Buy’ Health Care Dividend Stocks to Buy as Summer Bear Market Rally Ends

For the company’s fourth quarter of fiscal 2022, the consensus revenue estimate is $1.98 billion, which would be down 6.9% sequentially but up by 5.9% year over year. Adjusted earnings per share (EPS) are forecast at $0.56, down 19.5% sequentially and up a penny year over year. For the fiscal year ended in July, estimates call for EPS of $2.84, down 4.7%, on sales of $8.54 billion, up by about 0.8%.

Campbell Soup stock trades at 18.0 times expected 2022 EPS, 17.5 times estimated 2023 earnings of $2.92 and 16.7 times estimated 2024 earnings of $3.07 per share. The stock’s 52-week trading range is $39.76 to $51.94. The company pays an annual dividend of $1.48 (yield of 2.89%). Total shareholder return for the past year was 27.7%.

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