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The week in preview: Chicken soup (or a doughnut) for the recession-weary soul?

Posted Sep 7th 2008 12:30PM by Trey ThoelckeTrey Thoelcke RSS Feed
Filed under: Earnings reports, Forecasts, Economic data

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In last week's preview we took a peek at expectations for Campbell Soup earnings, but now the company is scheduled to report fiscal fourth quarter results this coming Thursday. With Krispy Kreme also among the handful of companies scheduled to report this week, we may yet see whether consumers are turning to comfort foods in these uncertain times.

Campbell Soup Co. (NYSE: CPB), the world's biggest soup maker, is still expected by analysts surveyed by Thomson Financial to post net income of 25 cents per share (up 44.0% from a year ago) on revenue of $1.7 billion (up 7.4%). The Camden, N.J.-based company has just missed earnings estimates in the past few quarters. Its long-term EPS growth forecast is 7.9%, which is less than the industry average, but about the same as rivals Kraft Foods (NYSE: KFT) and HJ Heinz (NYSE: HNZ). The analysts' consensus recommendation is currently to buy Campbell.

Hip, Canadian apparel retailer Lululemon Athletica Inc. (NASDAQ: LULU) is also anticipated to be a big earnings gainer when it reports this week. Net income is expected to come in at 13 cents per share (up 46.2% from a year ago) on revenue of $88.2 million (up 50.3%). Lululemon met expectations when it reported 12 cents per share in the previous quarter. Its long-term EPS growth forecast is a healthy 40.2%, which is better than the industry average and that of rival Under Armour Inc. (NYSE: UA). The analysts' consensus recommendation is currently to buy Lululemon.

This week's other expected double-digit earnings gainers include:

Bad news for ousted CEOs: executive recruitment firm Korn/Ferry International (NYSE: KFY) is expected to be among this week's earnings decliners. Analysts anticipate that the Los Angeles-based company will post a fiscal first quarter profit of 30 cents per share (down 16.7% from a year ago) on revenue of $206.9 million (up 5.4%). The company has beat earnings estimates in the past few quarters. Its long-term EPS growth forecast is 14.3%, about the same as the S&P 500. The analysts' consensus recommendation is to hold Korn/Ferry.

This week's other expected double-digit earnings decliners include:

But getting back to Krispy Kreme Doughnuts Inc. (NYSE: KKD), the Winston-Salem, N.C.-based sweet treat maker is among companies expected to report a loss this week. However, Krispy Kreme is expected to narrow its net loss to a mere penny per share, from a loss of 8 cents per share a year ago, on revenue of $103.6 million (down 6.6%). But the company has tended recently to fall short of quarterly expectations. Analysts on average consider KKD to be underperforming.

Also expected to have narrowed their losses are Arcsight Inc. (NASDAQ: ARST), RG Barry Corp. (NASDAQ: DFZ), and Hi-Tech Pharmacal Co. (NASDAQ: HITK). Analysts anticipate they will post losses of 3 cents, 7 cents, and 9 cents per share, respectively. On the other hand, despite all the discussion of alternative energry, Piedmont Natural Gas Co. Inc. (NYSE: PNY) and Ocean Power Technologies Inc. (NASDAQ: OPTT) are expected to have widened their losses to 14 cents and 40 cents per share, respectively. G-III Apparel Group (NASDAQ: GIII) is also expected to widen its loss to 24 cents per share.

Other economic data scheduled to be released this week include:

Visit AOL Money & Finance for more earnings coverage.

Tags: AHII, Animal Health, Archsight, ARST, Campbell Soup, CPB, DFZ, earnings, earnings reports, featured, G-III Apparel, GIII, Heinz, HITK, HNZ, HOFT, Hooker Furniture, KFT, KFY, KKD, KornFerry, Kraft Foods, Krispy Kreme, LAKE, Lakeland, LULU, Lululemon, MEI, Methode Electronics, MIND, Mitcham Industries, NLCI, Nobel Learning, Ocean Power, OPTT, Oxford Industries, OXM, PAY, PBY, Peerless Manufacturing, Pep Boys, Piedmont Natural Gas, PMFG, PNY, RG Barry, SEH, SHFL, Shuffle Master, Spartech, STEI, Stewart Industries, UA, Under Armour, Verifone, XRTX, Xyratez

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Last updated: November 27, 2009: 01:55 AM

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