Sara Lee Earnings Preview: Analysts Expect Falling Revenue, Rising EPS
Sara Lee (NYSE: SLE) announces its next round of earnings this Thursday, November 3, 2011. Here's Benzinga's advanced look at Sara Lee's first quarter earnings report.
Earnings and Revenue:
Based on estimates, investors are readying for a positive EPS reading of 17 cents/share and revenues of $1.99 billion. Sara Lee's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 13 cents/share on revenues of $2.06 billion. We'll have to wait for Thursday to see if the company falls in line with analyst expectations and reports an increase in EPS and a slight decline in revenue from the year-ago quarter.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 | Q3 | Q2 | Q1 |
| EPS Estimate | $0.20 | $0.25 | $0.25 | $0.18 |
| EPS Actual | $0.20 | $0.24 | $0.31 | $0.13 |
Stock Performance:
As of October 28, 2011, Sara Lee's current share price was $18.17. Since January 1st, shares have given investors a return of 5.8%. For a full 12 months, the return has risen by 5.8%. 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 Hold. The strength of this rating has declined slightly over the past three months.
Competitors:
Wondering how some of the other consumer staples companies are doing? Here are a few of Sara Lee's peers in that sector.
- Flowers Foods (NYSE: FLO): Hold with a $0.23 recent quarter EPS
- Green Mountain Coffee Roasters (NASDAQ: GMCR): Moderate Buy with a $0.49 recent quarter EPS
- Hain Celestial Group (NASDAQ: HAIN): Moderate Buy with a $0.35 recent quarter EPS
Sara Lee is in the food-miscellaneous/diversified industry, which has experienced price/earnings growth of 4.2%.
Finally, a description of the company's main areas of operation: Sara Lee is a global consumer-goods company. The company manufactures a range of branded meats, bakery and beverage products.
Take Action:
That's your advanced look at Sara Lee's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.
- To see up-to-date news on Sara Lee, click here
- To see other trading ideas, click here
- To see other company earnings recaps, click here
