On April 18, Motley Fool Income Investor pick Kraft
- For all the cheesy goodness going on at Kraft, take a look at this earnings morsel.
- Revenues increased 5.7%, while organic revenues increased 3.6%.
- The company spent $88 million under its cost-restructuring program in the quarter, and it expects to incur a further $625 million in 2007.
- During the quarter, Kraft repurchased 5.9 million shares at a total cost of $187 million; the company has a new $5 billion repurchase plan in place.
- Kraft is only rated two stars by the Motley Fool CAPS community. But that's on par with rival Heinz
(NYSE:HNZ) , and ahead of other food stocks like ConAgra(NYSE:CAG) and Sara Lee(NYSE:SLE) . Join CAPS for free today to see what everyone is saying.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$8,586 |
$8,123 |
5.7% |
|
Net Profit |
$702 |
$1,006 |
(30.2%) |
|
EPS |
$0.43 |
$0.61 |
(29.5%) |
|
Diluted Shares |
1,636 |
1,662 |
(1.6%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
35.5% |
36.1% |
(0.6) |
|
Operating Margin |
13.1% |
12.5% |
0.6 |
|
Net Margin |
8.2% |
12.4% |
(4.2) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$251 |
$267 |
(6%) |
|
Accounts Rec. |
$3,977 |
$3,431 |
15.9% |
|
Inventory |
$3,881 |
$3,587 |
8.2% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,574 |
$2,020 |
27.4% |
|
Long-Term Debt |
$7,081 |
$8,476 |
(16.5%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Kraft's lack of cash flow data left a bad taste in our mouth.
Free cash flow is a Fool's best friend.
Related Foolishness:
Kraft and Heinz are both Motley Fool Income Investor recommendations. To see what picks are helping the newsletter service beat the market, take a free 30-day trial today.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
