The Key Earnings For The Week of Feb. 11: Cognex Corporation (CGNX), Rackspace Hosting, Inc. (RAX)

Whole Foods Market fascinates me. I’ve discussed it in more detail here and my view remains the same. Competition is coming, so WFM can expect some pressure in the future, but I think its market will expand anyway. I’m amazed by how concentrated its selling tends to be. It previously argued that 20% of its customers contributed nearly 80% of its revenue. This implies that there is a hard core of wealthy shoppers who are driving this business forward. If so then it’s entirely feasible that WFM has plenty more room to expand as it converts more of these potential ‘uber customers’ to its offering.

Thursday

Thursday sees a couple of interesting health care plays in DaVits and VCA Antech give numbers, but the big earnings will come from PepsiCo, Inc. (NYSE:PEP). The stock has been doing fine, but I think the strategy lacks some coherence. I’m not really a value-based investor so this is not my forte, but I think PepsiCo has some hugely powerful brands that the company is not taking advantage of. Moreover, over 70% of its operating profits come from the Americas, and it remains a distinct second to The Coca-Cola Company (NYSE:KO) in international soft drink sales. This suggests a split would do it good. And lastly, I note that its recent revenue growth has come more from pricing than from volumes. Is this the right policy for a company geared to generate synergies from scale?

Friday

It’s a lot more interesting than usual on Friday with Abercrombie & Fitch Co. (NYSE:ANF) reporting, and the food theme for the week is kept going when Campbell Soup Company (NYSE:CPB) and Burger King Holdings, Inc. (NYSE:BKC) give numbers. Campbell is one of those companies that doesn’t report good earnings yet keeps going up nonetheless. I suspect this is on account of its high yield.

The article The Key Earnings For The Week of Feb. 11 originally appeared on Fool.com and is written by Lee Samaha.

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