Kraft Foods Earnings Preview: Analysts Expect Higher EPS, Revenue
Kraft Foods (NYSE: KFT) unveils its next round of earnings this Wednesday, November 2, 2011. Get the latest predictions in Benzinga's essential guide to the company's third quarter earnings report.
Earnings and Revenue:
Analysts are looking ahead to a positive EPS of 56 cents/share and revenues of $12.8 billion. Kraft Foods' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 47 cents/share on revenues of $11.86 billion. Can the company manage the estimated 19.1% rise in EPS and 7.9% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Wednesday to find out.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $0.58 | $0.47 | $0.46 | $0.46 |
| EPS Actual | $0.62 | $0.52 | $0.46 | $0.47 |
Stock Performance:
Shares of Kraft Foods were trading at $35.47 as of October 27, 2011. Since January 1st, shares have given investors a return of 15.5%. For a full 12 months, the return has risen by 16.2%. 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 is a Moderate Buy. This rating has strengthened slightly over the past ninety days.
Competitors:
Wondering how some of the other consumer staples companies are doing? Here are a few of Kraft Foods' peers in that sector.
- ConAgra Foods (NYSE: CAG): Hold with a $0.29 recent quarter EPS
- General Mills (NYSE: GIS): Moderate Buy with a $0.64 recent quarter EPS
- Hain Celestial Group (NASDAQ: HAIN): Moderate Buy with a $0.35 recent quarter EPS
Kraft Foods is in the food-miscellaneous/diversified industry, which has experienced price/earnings growth of 4%.
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 Foods 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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