On Wednesday, Feb. 7, food and beverage firm Sara Lee
- Total sales grew 7%, ahead of analyst expectations.
- Diluted earnings were negative, as $0.29 in charges and restructuring activities took place. Sara Lee completed the spinoff of Hanesbrands
(NYSE:HBI) on Sept. 5, 2006. - Management expects fiscal 2007 diluted earnings in the range of $0.58-$0.64 per share and 5%-6% sales growth to over $12 billion.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$3,182 |
$2,974 |
7.0% |
|
Net Profit |
($62) |
$438 |
N/A |
|
EPS |
($0.08) |
$0.57 |
N/A |
|
Diluted Shares |
737 |
765 |
(3.7%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
38.03% |
38.94% |
(0.91) |
|
Operating Margin |
(0.06%) |
3.56% |
(3.62) |
|
Net Margin |
(1.95%) |
14.73% |
(16.68) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,704 |
$1,955 |
38.3% |
|
Accounts Rec. |
$1,354 |
$1,746 |
(22.5%) |
|
Inventory |
$958 |
$2,184 |
(56.1%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$967 |
$1,244 |
(22.3%) |
|
Long-Term Debt |
$3,335 |
$3,736 |
(10.7%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$38 |
$859 |
(95.6%) |
|
Capital Expenditures |
$239 |
$166 |
44.0% |
|
Free Cash Flow |
($201) |
$693 |
(129.0%) |
Find out why Fools always follow the money.
Comparable companies:
-
Unilever
(NYSE:UL) -
Kraft
(NYSE:KFT) -
General Mills
(NYSE:GIS)
Related Foolishness:
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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
