The 10-second takeaway
For the quarter ended March 31 (Q1), Kraft Foods met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew.
Margins dropped across the board.
Kraft Foods notched revenue of $13.09 billion. The 14 analysts polled by S&P Capital IQ expected revenue of $13.05 billion on the same basis. GAAP reported sales were 4.1% higher than the prior-year quarter's $12.57 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.57. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.56 per share. GAAP EPS of $0.46 for Q1 were 2.2% higher than the prior-year quarter's $0.45 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 35.6%, 130 basis points worse than the prior-year quarter. Operating margin was 13.7%, 10 basis points worse than the prior-year quarter. Net margin was 6.2%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $14.14 billion. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $55.69 billion. The average EPS estimate is $2.52.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,396 members out of 2,548 rating the stock outperform, and 152 members rating it underperform. Among 777 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 743 give Kraft Foods a green thumbs-up, and 34 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 $41.89.
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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.