Sara Lee Corp. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sara Lee Corp. (NYSE:SLE) will unveil its latest earnings on Thursday, May 3, 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 analyst estimate is for profit of 25 cents per share, a rise of 4.2% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 24 cents during the last month. For the year, analysts are projecting net income of 93 cents per share, a rise of 19.2% from last year.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting profit of 27 cents per share, and the previous quarter, it had net income of 18 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.95 billion in revenue this quarter, a decline of 12.2% from the year-ago quarter. Analysts are forecasting total revenue of $8.08 billion for the year, a decline of 6.9% from last year’s revenue of $8.68 billion.

Analyst Ratings: With four analysts rate analysts rating the stock a buy, one rates rating it as a sell, and five rate rating it a hold, analysts are bullish on the stock.

A Look Back: In the second quarter, profit fell 46.8% to $468 million (79 cents a share) from $880 million ($1.37 a share) the year earlier, but exceeded analyst expectations. Revenue fell 11.4% to $2.08 billion from $2.35 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 13.9% in the third quarter of the last fiscal year, 25.9% in fourth quarter of the last fiscal year and 24.5% in the first quarter and then fell again in the second quarter.

Stock Price Performance: Between February 1, 2012 and April 27, 2012, the stock price rose $3.12 (16.5%), from $18.91 to $22.03. The stock price saw one of its best stretches over the last year between December 19, 2011 and December 29, 2011, when shares rose for eight straight days, increasing 3.4% (+62 cents) 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, dropping 5.3% (-99 cents) over that span.

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

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