Earnings Preview: Kraft's Revenue Expected to Rise

Kraft KFT announces its next round of earnings this Thursday, August 4, 2011. Here's Benzinga's essential guide to Kraft's second quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of 58 cents/share and revenues of $13.15 billion. Kraft's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 60 cents/share on revenues of $12.25 billion. We'll have to wait for Thursday to see if Kraft reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Kraft were trading at $34.38 as of July 29, 2011. Since January 1st, shares of Kraft have given investors a return of 11%. For a full 12 months, the return has risen by 13.4%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Kraft is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Kraft's peers.

• ConAgra CAG: Hold with a $0.47 recent quarter EPS
• General Mills GIS: Moderate Buy with a $0.52 recent quarter EPS
• Hain Celestial Group HAIN: Moderate Buy with a $0.36 recent quarter EPS

The food-miscellaneous/diversified company's industry has seen price/earnings growth of 4.4% during the current fiscal year.

Finally, a description of the company's main areas of operation: Kraft Foods manufactures and markets packaged food products, including snacks, beverages, cheese and convenient meals.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Kraft earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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