Thursday, February 12, 2015

What to Expect When Kraft Foods (KRFT) Reports Earnings Results Later Today

NEW YORK (TheStreet) --Kraft Foods Group Inc. is scheduled to release its fourth quarter 2014 earnings results after the market close this afternoon. Analysts are expecting the packaged foods company whose brands include Jell-O, Kraft Macaroni and Cheese, Planters, and more to post mixed results for the most recent quarter with a slight increase in revenue and a drop in earnings per share. Kraft Foods had been forecast to report earnings of 73 cents per share on revenue of $4.63 billion for the 2014 fourth quarter. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Last year Kraft Foods said its fourth quarter earnings per share were 1.54 on revenue of $4.59 billion in 2013. Shares of Kraft Foods are up 0.48% to $65.38 at the start of trading on Thursday. Separately, TheStreet Ratings team rates KRAFT FOODS GROUP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate KRAFT FOODS GROUP INC (KRFT) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: Compared to its closing price of one year ago, KRFT's share price has jumped by 30.94%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, KRFT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. Despite its growing revenue, the company underperformed as compared with the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market, KRAFT FOODS GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500. KRAFT FOODS GROUP INC's earnings per share declined by 10.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, KRAFT FOODS GROUP INC increased its bottom line by earning $4.51 versus $0.94 in the prior year. For the next year, the market is expecting a contraction of 30.4% in earnings ($3.14 versus $4.51). The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food Products industry. The net income has decreased by 10.8% when compared to the same quarter one year ago, dropping from $500.00 million to $446.00 million. You can view the full analysis from the report here: KRFT Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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