The 10-second takeaway
For the quarter ended June 30 (Q2), Kraft Foods missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share improved.
Margins improved across the board.
Kraft Foods reported revenue of $13.29 billion. The 15 analysts polled by S&P Capital IQ predicted revenue of $13.96 billion on the same basis. GAAP reported sales were 4.3% lower than the prior-year quarter's $13.88 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 $0.68. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share. GAAP EPS of $0.58 for Q2 were 5.5% higher than the prior-year quarter's $0.55 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 36.7%, 160 basis points better than the prior-year quarter. Operating margin was 14.8%, 80 basis points better than the prior-year quarter. Net margin was 7.7%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $13.43 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $55.46 billion. The average EPS estimate is $2.49.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,419 members out of 2,571 rating the stock outperform, and 152 members rating it underperform. Among 798 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 768 give Kraft Foods a green thumbs-up, and 30 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 $43.47.
Can your retirement portfolio provide you with enough income to last? You'll need more than Kraft Foods. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Kraft Foods to My Watchlist.