A humorous look at the companies that caught our eye, for better or worse, this week
Campbell Soup (STAR)
CPB - NYSE
On a cold day, nothing warms you up like a bowl of Campbell’s condensed tomato soup made with wholesome ingredients including water, tomato paste and delicious high-fructose corn syrup. Shareholders couldn’t get enough of the creamy goodness after the packaged foods giant – which also makes Goldfish crackers, Kettle Brand potato chips and Pepperidge Farm desserts – posted fiscal first-quarter results above expectations. Even as Campbell’s net sales slipped 2 per cent to US$2.5-billion, adjusted earnings per share of 91 US cents topped Wall Street’s estimates, helped by higher prices for its snacks and packaged foods. Making money is mm mm good.
Signet Jewelers (STAR)
SIG - NYSE
Remember those commercials that advised people to spend two months’ salary on a diamond engagement ring? Well, instead of throwing your money away on a stupid ring that will lose half of its value as soon as you leave the store, maybe you should invest it in shares of Signet Jewelers. The stock rose after the retailer – which also owns Kay, Zales, Jared and Peoples Jewellers – posted third-quarter sales and earnings above analysts’ estimates. What’s more, Signet said wedding engagements are rebounding after a slump during the pandemic, which bodes well for future diamond sales. Start saving now, suckers.
JetBlue Airways (STAR)
JBLU - Nasdaq
Multiple-choice quiz! Shares of JetBlue Airways rose after the company: a) announced a new ultralow-cost fare in which passengers can choose to ride in the cargo hold (extra charge for optional bubble wrap); b) unveiled plans to remove all seats from its aircraft to improve fuel efficiency; c) narrowed its full-year loss forecast for 2023 and said that, since late October, “bookings have outperformed expectations for both holiday peak and non-holiday travel periods.” Answer: c.
Sprinklr (DOG)
CXM - NYSE
Looks like Sprinklr investors just got drenched. Shares of the company, whose software is used in AI-powered chatbots and other customer service applications, had been surging amid the frenzy surrounding artificial intelligence. But the stock was crushed after third-quarter results disappointed investors. Even as sales rose by double digits and the company swung to a profit from a year-earlier loss, Sprinklr’s forecast that full-year revenue will rise by as much as 18 per cent marked a sharp slowdown from growth of 26 per cent last year. Maybe investing in AI isn’t so intelligent after all.
RH (DOG)
RH - NYSE
Money’s tight, but you need a new couch. Do you choose the $599.95 faux linen fabric sofa at The Brick, or splurge on the $18,435 Italian leather modular sofa at RH? Judging by the latest results from luxury home furnishings retailer RH, more people are going for the faux linen. With high interest rates putting the brakes on the housing market – a key driver of furniture sales – third-quarter revenue at RH tumbled nearly 14 per cent as the company swung to a net loss of US$2.2-million from a year-earlier profit of US$98.8-million. “We continue to expect the existing housing market to remain frozen until interest rates and/or home prices fall meaningfully,” CEO Gary Friedman said in a letter to RH shareholders. Maybe throw in some free Scotchgard to get those sofas moving?