S&P 500 (NYSE:SPY) component Sara Lee Corp. (NYSE:SLE) reported its results for the third quarter. Sara Lee is a global consumer-goods company. The company manufactures a range of branded meats, bakery and beverage products.
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Sara Lee Corp Earnings Cheat Sheet for the Third Quarter
Results: Net income for Sara Lee Corp. fell to $123 million (6 cents per share) vs. $185 million (25 cents per share) a year earlier. This is a decline of 33.5% from the year-earlier quarter.
Revenue: Rose 3% to $1.86 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Sara Lee Corp. reported adjusted net income of 20 cents per share. By that measure, the company fell short of mean estimate of 25 cents per share. It fell short of the average revenue estimate of $1.95 billion.
Quoting Management: “I am pleased to announce that we are on track to spin off the Coffee & Tea business by June 30. Significant progress has been made in the last quarter with the IRS private letter ruling, an F-1 prospectus filing for Coffee, the successful bond redemption and tender offers and the investor day for Coffee Co (D.E MASTER BLENDERS 1753),” said Executive Chairman Jan Bennink.
The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by one cent.
Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is 23 cents per share, a drop from 24 cents. For the fiscal year, the average estimate has moved up from 91 cents a share to 93 cents over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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