Earnings Preview: Kraft's Revenue Expected to Rise
Kraft (NYSE: KFT) announces its next round of earnings this Thursday, August 4, 2011. Here's Benzinga's essential guide to Kraft's second quarter earnings report.
Earnings and Revenue:
Analysts are predicting an EPS reading of 58 cents/share and revenues of $13.15 billion. Kraft's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 60 cents/share on revenues of $12.25 billion. We'll have to wait for Thursday to see if Kraft reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 | Q4 | Q3 | Q2 |
| EPS Estimate | $0.47 | $0.46 | $0.46 | $0.52 |
| EPS Actual | $0.52 | $0.46 | $0.47 | $0.60 |
Stock Performance:
Shares of Kraft were trading at $34.38 as of July 29, 2011. Since January 1st, shares of Kraft have given investors a return of 11%. For a full 12 months, the return has risen by 13.4%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
- Long-term shareholders are already enjoying 12-month gains prior to the announcement
Average Stock Rating:
The average rating by analysts for Kraft is a Moderate Buy. Over the past three months this rating's strength has declined slightly.
Competitors:
Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Kraft's peers.
- ConAgra (NYSE: CAG): Hold with a $0.47 recent quarter EPS
- General Mills (NYSE: GIS): Moderate Buy with a $0.52 recent quarter EPS
- Hain Celestial Group (NASDAQ: HAIN): Moderate Buy with a $0.36 recent quarter EPS
The food-miscellaneous/diversified company's industry has seen price/earnings growth of 4.4% during the current fiscal year.
Finally, a description of the company's main areas of operation: Kraft Foods manufactures and markets packaged food products, including snacks, beverages, cheese and convenient meals.
Take Action:
Now that you have reviewed all the numbers, be ready to move if the upcoming Kraft earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.
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