Campbell Soup takes center stage when it reports quarterly results ahead of the opening bell Friday.
The soup giant is expected to report fourth-quarter adjusted earnings of 42 cents per share on $1.98 billion in revenue, according to data compiled by Bloomberg.
In the previous quarter, despite the soft soup sales, investors were encouraged by Campbell Soup’s better-than-expected overall results and outlook for the full year. Nevertheless, soup sales have continued to weigh on the company as consumers shift away from processed canned foods to healthier alternatives. Legacy soup and cereal companies have been trying to adapt to changing consumer tastes; however, turnaround plans have proved long and tricky.
Despite the headwinds, analysts are anticipating a pretty solid fourth quarter from Campbell. Shares have performed well this year and have outperformed both its peers and the broader market. Campbell Soup stock soared 35% this year, while the Consumer Staples ETF, XLP, jumped 21%, and the S&P 500 (^GSPC) rose 18%.
The options market is implying a 5.7% move in either direction following Campbell’s results.
Meanwhile, market watchers can expect the following economic data on Friday: Personal income, July (0.3% expected, 0.4% prior); personal spending, July (0.5% expected, 0.3% prior); PCE deflator MoM, July (0.2% expected, 0.1% prior); PCE deflator YoY, July (1.6% expected, 1.6% prior); MNI Chicago PMI, August (48.0 expected, 44.4 prior); University of Michigan Sentiment Survey, August final (92.5 expected, 92.1 prior).
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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