Schaeffer's Trading Floor Blog

Earnings on Deck: Campbell Soup Company, The J.M. Smucker Company, and Red Robin Gourmet Burgers, Inc.

Previewing CPB, SJM, and RRGB ahead of Friday's earnings reports

by 2/13/2014 1:41 PM
Stocks quoted in this article:

Headed to the earnings confessional on Friday are food firms Campbell Soup Company (NYSE:CPB), The J.M. Smucker Company (NYSE:SJM), and Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB). Here's a quick look at these names as earnings approach.

  • Campbell Soup Company (NYSE:CPB) will unveil its fiscal second-quarter earnings before the opening bell tomorrow. Historically, the firm has fallen short of analysts' per-share profit estimates only once in the past eight quarters, yet averages a loss of 1.7% in the week after reporting. Ahead of tomorrow's earnings release, Wall Street is bearishly biased, with just one of 15 analysts offering up a "buy" or better rating. Plus, short interest represents more than seven sessions' worth of pent-up buying demand, at CPB's average pace of trading. Around midday, CPB has added 0.6% to wink at the $41.08 level.

  • The J.M. Smucker Company (NYSE:SJM) will release its fiscal third-quarter figures pre-market tomorrow. Like CPB, SJM has been spotty in the earnings limelight; over the past eight quarters, the stock has averaged a loss of 0.6% in the subsequent week after reporting. Near-term option traders are slightly more put-heavy than usual right now, as evidenced by the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.67, which registers in the 68th percentile of its annual range. What's more, speculators are paying a pretty penny to gamble with SJM's short-term options ahead of earnings, as the stock's Schaeffer's Volatility Index (SVI) sits at an annual high of 31%. At last check, SJM is up 0.5% at $94.22.

  • Finally, Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) will report fourth-quarter earnings bright and early tomorrow. Unlike the other two stocks in this article, RRGB tends to wow the Street with its earnings, matching or exceeding Wall Street's bottom-line estimates in each of the past eight quarters. What's more, the equity averages a one-week gain of 8.5% after reporting, and has notched double-digit percentage-point gains in four of the last six quarters. Nevertheless, short interest grew 6% during the past month, and would take more than a week to buy back, at RRGB's average pace of trading. Another upside earnings surprise tomorrow could spark a short-squeeze situation for the shares. In early afternoon action, RRGB is 2.4% higher at $73.75.

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