Will Campbell Soup Rise After Q2 Earnings Report?

Also of importance will be the gross margin, as well as the volume and mix metrics. Since the company does pay a dividend, commentary on cash flow should be examined. In addition, I'd look for any guidance on the effectiveness, and cost, of the various marketing campaigns currently being employed.

Those who purchased Campbell this past week in speculation of an earnings pop have an exciting session coming up, in my opinion, because I think this is one of the harder trades to figure out. On the one hand, I'm bearish ahead of the data because, as Elizabeth Harrow mentioned last Wednesday, the company lowered its sales projections for fiscal 2010. On the other hand, why should I be so bearish? The bottom-line expectation wasn't altered by management. And here are some other things to consider, courtesy of the cited article: the bad news may essentially already be priced in, and Campbell has declared a few victories against the analysts in recent months. That has to count for something.

Campbell Soup, whose related companies include General Mills (GIS) and Kraft (KFT), probably isn't a favorite earnings bet for many individual investors anyway. It's usually best utilized in core portfolios. Still, best of luck to those owning this one over the week.

Disclosure: I don't own any company mentioned; positions can change without notice.