Kraft Foods Inc First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Kraft Foods Inc (NYSE:KFT) will unveil its latest earnings on Thursday, May 3, 2012. Kraft Foods manufactures and markets packaged food products, including snacks, beverages, cheese, and convenient meals.

Kraft Foods Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 56 cents per share, a rise of 7.7% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 10% compared to last year’s $2.52.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the fourth quarter of the last fiscal year, the company reported net income of 57 cents per share versus a mean estimate of profit of 57 cents per share. In the third quarter of the last fiscal year, the company beat estimates by 2 cents.

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Wall St. Revenue Expectations: Analysts predict a rise of 3.7% in revenue from the year-earlier quarter to $13.04 billion.

Analyst Ratings: Analysts are high on the stock, with 12 analysts rating it as a buy, none rating it as a sell and seven rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 53.7% to $830 million (47 cents a share) from $540 million (30 cents a share) the year earlier, meeting analyst expectations. Revenue rose 6.6% to $14.69 billion from $13.77 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 4.2% in the second quarter of the last fiscal year and 22.3% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.1% in the first quarter of the last fiscal year, 13.3% in the second quarter of the last fiscal year and 11.5% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between March 1, 2012 and April 27, 2012, the stock price had risen $1.68 (4.5%), from $37.72 to $39.40. The stock price saw one of its best stretches over the last year between October 4, 2011 and October 14, 2011, when shares rose for nine straight days, increasing 7.2% (+$2.33) over that span. It saw one of its worst periods between April 2, 2012 and April 11, 2012 when shares fell for seven straight days, dropping 3.9% (-$1.51) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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