The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kraft Foods met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins shrank, and net margins increased.
Kraft Foods recorded revenue of $14.69 billion. The 15 analysts polled by S&P Capital IQ predicted sales of $14.79 billion on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $13.77 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.57. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.57 per share on the same basis. GAAP EPS of $0.47 for Q4 were 52% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.3%, 150 basis points worse than the prior-year quarter. Operating margin was 10.3%, 370 basis points worse than the prior-year quarter. Net margin was 5.7%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.97 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $55.85 billion. The average EPS estimate is $2.51.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,390 members rating the stock outperform and 153 members rating it underperform. Among 764 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 731 give Kraft Foods a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kraft Foods is outperform, with an average price target of $39.39.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.