SLE Beats FQ2 Expectations, Raises 2010 Guidance

Analysts at BMO Capital Markets maintain their "market perform" rating on Sara Lee (NYSE: SLE), while raising their estimates for the company. The target price for SLE has been raised to $13.

Sara Lee reported its FQ2 EPS significantly ahead of the estimates, driven by a better-than-expected operating performance at its NA retail and international beverage segments and lower tax rates. SLE has raised its guidance for 2010.

“We are encouraged by the ongoing expansion in SLE’s operating margins and applaud SLE’s operational and organizational changes but remain somewhat cautious of the sustainability of the trends,” the analysts say. BMO Capital Markets has raised its EPS estimates for FY2010 and FY2011 to $1.03 and $1.08, respectively.

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