Sentiment in Campbell Soup Company (NYSE:CPB) is at its lowest point in 12 months as shares had to digest the combination of an ugly Q3 print along with the stepping down of the CEO, Denise Morrison. The stock now though (which is trading at $34.37 - down around $13 per share or 28% year to date) is going to start attracting interest from value investors especially when you throw that dividend into the mix.
The Q3 loss was the final blow to Morrison's tenure which ultimately led to her exit. Nevertheless one can't say that her time at the helm was all negative. The CEO (like so many others in this sector) has had to wrestle with changing consumer tastes and the like where the market for its prime soup offerings seemed to be falling and not rising. This is why she diversified the company into the snacks and natural segments which have helped the top line. We actually saw sales in the global biscuits and snacking segment rise again in Q3, so this must be seen as a success in its own right. However, the overall portfolio saw flat sales and what was disappointing was the key gross margin metric which fell to 32%. These numbers along with a guidance cut made investors run for exit.
