Kraft Foods Beats, Affirms Outlook
Kraft Foods Group Inc. (NASDAQ: KRFT) said this morning that new products and increased advertising helped it exceed Wall St. expectations. It also stood by its forecast for 2013.
The food and beverage company posted adjusted earnings per share (EPS) of $0.79 on revenues of $4.60 billion for the third quarter. In the same period a year ago, before the company split, it reported $0.70 per share on revenues of $4.47 billion. This quarter's results also compare to the Thomson Reuters estimates for EPS of $0.69 and $4.56 million in revenues.
Chief Financial Officer Tim McLevish said:
Our results demonstrate the extraordinary efforts and commitment of our people who continued to grow our businesses while enabling a seamless spin-off. As we look forward, we believe we're well-positioned to continue our progress and deliver 2013 results consistent with what we've previously outlined.
The company is calling for full-year earnings of $2.60 per share and revenue growth in line with the rest of the North American food and beverage market. The Thomson Reuters forecast is for $2.79 per share on $18.83 billion in revenues.
Mondelez International Inc. (NASDAQ: MDLZ), the other part of the recent breakup, is on tap to share its third-quarter results later today. Analysts expect EPS to be down about 38% year-over-year to $0.36 and sales 34.5% lower to $8.66 billion.
Kraft shares are about 1.5% higher in premarket trading to $45.38. The post-IPO range is $42.00 to $48.00. Before this morning's report, the mean price target was $48.95.
Mondelez shares are down about 2% in premarket trading to $25.97, in a post-IPO range of $24.32 to $28.48.
Filed under: 24/7 Wall St. Wire, Earnings, Food Tagged: KRFT, MDLZ