Earnings Preview: Campbell Soup Co. (CPB)

Campbell Soup Company CPB is currently higher on the session by 0.68%, trading at $37.22. The company is scheduled to report earnings September 3rd, before the opening bell. • Estimates The Street is looking for Q4 earnings per share of $0.30 on revenue of $1.60 billion. These estimates have stayed the same over the past 90 days. The Whisper number for CPB is $0.31. • Guidance The Street is looking for Q1 EPS of $0.92 on revenue of $2.25 billion. The full year 2010 estimates are $2.46 per share on revenue of $7.76 billion; FY 2011 is at $2.65 per share on revenues of $7.94 billion. • Technical Picture Shares of CPB have been rallying strongly since it bottomed in April of 2009, when the stock was trading at $24.63. The rally has now placed shares near a 52-week high, but also near strong historical resistance. On a near-term basis, the stock is sitting at a key pivot point ($37.50), which could send share sharply higher or initiate a new bear trend. • Volatility Both historical volatility and implied volatility have been down-trending over the past few months after a spike higher in mid-May. Currently HI is at 15% and IV is at 18%. The front month $37.50 straddle is trading at 18.40%; the October $37.00 straddle is trading at 17.71% Campbell Soup Company is a global manufacturer and marketer of food products. The company is organized in four segments: U.S. Soup, Sauces and Beverages; Baking and Snacking; International Soup, Sauces and Beverages, and North America Foodservice. On September 29, 2008, the company sold its sauce and mayonnaise business comprised of products sold under the Lesieur brand in France.