Sara Lee Corp. Earnings: Profit Slides

S&P 500 (NYSE:SPY) component Sara Lee Corp. (NYSE:SLE) reported its results for the second 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 Second Quarter

Results: Net income for the processed and packaged goods company fell to $468 million (79 cents per share) vs. $833 million ($1.30 per share) a year earlier. This is a decline of 44% from the year earlier quarter.

Revenue: Rose 6.3% to $2.08 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Sara Lee Corp. reported adjusted net income of 27 cents per share. By that measure, the company beat the mean estimate of 25 cents per share. It fell short of the average revenue estimate of $2.14 billion.

Quoting Management: “We continue to see solid progress in our businesses as we head into the second half of our fiscal year”, said Executive Chairman Jan Bennink. “We remain on track to complete the spin-off during the fourth quarter of the fiscal year. We have closed all announced business divestitures and have supplemented our core businesses with acquisitions that will strengthen our long-term growth profile. Each business now has the CEO and CFO in place and they are assessing further changes to strengthen the organization. Finally, as we announced last week, we now have full control over the Senseo trademark and look forward to a continued partnership with Philips to leverage Senseo’s strong brand equity into new products and geographic market expansion.”

Key Stats:

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 18 cents versus a mean estimate of net income of 17 cents per share.

The company reported a profit last quarter after being in the red the prior quarter. In the fourth quarter of the last fiscal year, the company booked a net loss of $111 million or a loss of 21 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 25 cents per share, down from 26 cents ninety days ago. The average estimate for the fiscal year is 91 cents per share, down from 92 cents ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com