Kraft Foods Beats, Affirms Outlook

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By Trey Thoelcke Published
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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.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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