Kraft Foods 4Q10 Reported Tomorrow; Relatively High Growth Expected (KFT)

A report released today by J.P. Morgan gives analysts' expectations for Kraft Food's KFT 4Q10 results, which will be reported tomorrow. EPS is estimated at $0.50 (up 10% from one year ago) versus the consensus of $0.46. According to the report, JPM analysts estimate organic growth for heritage Kraft at 4.5% in Q4. Despite lower-than-anticipated Q3 results, pricing and volumes data indicate better Q4 growth in both the North American and European markets, particularly with respect to cheese, meat, and coffee. Developing markets are expected to show an approximate 60% contribution from Cadbury, which Kraft acquired in 2010. JPM analysts are optimistic and believe that improving North American results and synergies from the Cadbury deal will drive double-digit earnings growth in 2011 and 2012. JPM analysts give KFT an Overweight rating with a price target of $31.13. It is trading at $31.23.