Earnings Previews: Campbell Soup, Stitch Fix, Toll Brothers

We are entering a dry spell for earnings reports until mid-January starts the carousel going again. That’s not to say that there is nothing happening, though.

One of the world’s largest software companies reports quarterly results later this week, as does one of the nation’s largest retailers. A homebuilder, a chipmaker and one of the OG meme stocks are also on deck.

Here’s a look at three firms reporting after markets close Tuesday or before they open on Wednesday.

Campbell Soup

Over the past 12 months, shares of Campbell Soup Co. (NYSE: CPB) are down about 11%, while the consumer staples sector has gained about 8.4%. Margins are the thing to watch for here. Has the company been able to pass along rising prices for food to its customers? While that may be important to small investors, remember that more than 80% of the company’s total float is owned by institutions that are unlikely to dump the shares’ solid dividend yield. Campbell Soup reports results before markets open Wednesday.

Sentiment on the stock is mixed, with 11 of 18 brokerages giving the stock a Hold rating. Just three have a Buy or Strong Buy rating, and the rest rate the stock a Strong Sell. At a recent price of around $41.90 a share, the upside potential based on a median price target of $45 is 7.4%. At the high price target of $54, the upside potential is about 29%.

For the company’s first quarter of fiscal 2022, the consensus revenue estimate is $2.28 billion, which would be up 21.6% sequentially but down about 2.6% year over year. Adjusted earnings per share (EPS) are forecast at $0.81, up 47.3% sequentially and down 18.6% year over year. For the full fiscal year, current estimates call for EPS of $2.76, down 7.4%, on sales of $8.44 billion, down less than 1%.

Campbell Soup’s share price to earnings multiple for fiscal 2022 is 15.5. For fiscal 2023, the multiple to estimated EPS of $2.93 is 14.3, and for 2024, it is 13.4 times estimated EPS of $3.13. The stock’s 52-week range is $39.76 to $53.77. Campbell Soup pays an annual dividend of $1.48 (yield of 3.60%). Total shareholder return for the past year was negative 11.4%.

Stitch Fix

Online retailer Stitch Fix Inc. (NASDAQ: SFIX) has seen its stock price drop by about a third over the past 12 months. In early July, the stock traded up 78% for the same period, so the decline has been precipitous. Since its January high, the stock price has dropped by 80%. The company reports first-quarter fiscal 2022 results after markets close Tuesday.

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