Two Ways To Play: Campbell's Mmm Mmm Just Okay Results
Strengthen your portfolio in good times and bad.
Stocks bolted out of the gate this morning and didn't look back, as US equities managed their biggest 2-day gain since 1987. One stock, however, noticeably lagged. That was Campbell Soup (CPB).
According to Bloomberg, the company said first quarter profits fell 3.7% because of marketing and restructuring costs, as well as the dollar's appreciation against other currencies.
Sales rose 12% as cash-strapped consumers scaled down, but gross margins were hurt during the period because of "cost inflation in excess of pricing" and commodity-hedging, the company said in a statement.
Campbell reported earnings of $0.77 per share for the quarter, which was actually a penny better than what analysts expected. But revenues came in at $2.25 billion, slightly below consensus estimates of $2.32 billion.
For more on Campbell, see Professor Jeff Macke's Target, Wal-Mart Get in the Spirit.
From the Bull Pen: We've been talking about the potential for a rally into year-end. The S&P recapturing 840 was very constructive. Those bullish can set sell stops below that point.
From the Bear Cave: Campbell's news weighed on the consumer staples today. Those bearish can consider the downside in Heinz (HNZ); a buy stop can be set near $42.
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