Kraft Foods Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Kraft Foods, Inc. (NYSE:KFT) will unveil its latest earnings on Wednesday, November 2, 2011. 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 19.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 55 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. Analysts are projecting profit to rise by 12.4% versus last year to $2.27.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net income of 62 cents per share against the mean estimate of 58 cents. In the prior quarter, the company reported profit of 52 cents.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Wall St. Revenue Expectations: Analysts are projecting a rise of 7.9% in revenue from the year-earlier quarter to $12.8 billion.

Analyst Ratings: Analysts are bullish on this stock with 13 analysts rating it as a buy, none rating it as a sell and seven rating it as a hold.

A Look Back: In the second quarter, profit rose 4.2% to $976 million (55 cents a share) from $937 million (53 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 13.3% to $13.88 billion from $12.25 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 17.6%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 24.9% from the year earlier quarter.

The increase in profit in the second quarter broke a streak of three consecutive quarters of year-over-year profit decreases. Net income dropped 57.6% in the first quarter, 23.9% in the fourth quarter of the last fiscal year and 8.5% in the third quarter of the last fiscal year.

Competitors to Watch: General Mills, Inc. (NYSE:GIS), J&J Snack Foods Corp. (NASDAQ:JJSF), Ralcorp Holdings, Inc. (NYSE:RAH), The Hain Celestial Group, Inc. (NASDAQ:HAIN), Kellogg Company (NYSE:K), ConAgra Foods, Inc. (NYSE:CAG), Inventure Foods, Inc. (NASDAQ:SNAK), TreeHouse Foods Inc. (NYSE:THS), PepsiCo, Inc. (NYSE:PEP), and Golden Enterprises, Inc. (NASDAQ:GLDC).

Stock Price Performance: During August 3, 2011 to October 27, 2011, the stock price had risen $1.45 (4.3%) from $34.02 to $35.47. 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, rising 7.2% (+$2.37) over that span. It saw one of its worst periods between May 31, 2011 and June 7, 2011 when shares fell for six-straight days, falling 2.7% (-92 cents) over that span. Shares are up $4.77 (+15.5%) year to date.

(Source: Xignite Financials)

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

 

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