Sara Lee Corp. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sara Lee Corp. (NYSE:SLE) will unveil its latest earnings on Thursday, February 2, 2012. Sara Lee is a global consumer-goods company. The company manufactures a range of branded meats, bakery and beverage products.

Sara Lee Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 25 cents per share, a decline of 19.4% 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. For the year, analysts are projecting profit of 91 cents per share, a rise of 16.7% from last year.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of 18 cents per share against a mean estimate of profit of 17 cents. The company fell in line with estimates in the fourth quarter of the last fiscal year.

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Wall St. Revenue Expectations: On average, analysts predict $2.14 billion in revenue this quarter, a decline of 8.9% from the year ago quarter. Analysts are forecasting total revenue of $8.19 billion for the year, a decline of 5.6% from last year’s revenue of $8.68 billion.

Analyst Ratings: Analysts seem relatively indifferent about Sara Lee with six of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the first quarter, the company swung to a loss of $217 million (37 cents a share) from a profit of $192 million (29 cents) a year earlier, but beat analyst expectations. Revenue fell 24.5% to $1.94 billion from $2.58 billion.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 25.9% in the fourth quarter of the last fiscal year from the year earlier, dropped 13.9% in third quarter of the last fiscal year from the year-ago quarter and 17.8% in the second quarter of the last fiscal year.

Sara Lee’s loss in the latest quarter followed profits in the previous three quarters. The company reported a profit of $111 million in the fourth quarter of the last fiscal year, a profit of $153 million in the third of the last fiscal year and a profit of $880 million in the second quarter of the last fiscal year.

Competitors to Watch: Unilever plc (NYSE:UL), Bridgford Foods Corp. (NASDAQ:BRID), The Hain Celestial Group, Inc. (NASDAQ:HAIN), Lancaster Colony Corp. (NASDAQ:LANC), J&J Snack Foods Corp. (NASDAQ:JJSF), Kraft Foods Inc. (NYSE:KFT), Flowers Foods, Inc. (NYSE:FLO), Snyder S Lance Inc (NASDAQ:LNCE), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), and TreeHouse Foods Inc. (NYSE:THS).

Stock Price Performance: During October 31, 2011 to January 27, 2012, the stock price had risen $1.38 (7.8%) from $17.69 to $19.07. The stock price saw one of its best stretches over the last year between March 17, 2011 and March 29, 2011 when shares rose for nine-straight days, rising 7.5% (+$1.23) over that span. It saw one of its worst periods between November 11, 2011 and November 21, 2011 when shares fell for seven-straight days, falling 5.3% (-99 cents) over that span.

(Company fundamentals 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