Fundamentals
- Profit was $662 million (45c) a share compared with $601 million (39c) a share a year ago
- Analysts forecasts were 40c a share, beating it by 5c
- Revenue fell to $9.40 billion hurt by the impact of the stronger dollar.
- A shift in the Easter holiday in April from March also had some impact on its sales.
- “Organic revenue” – sales that exclude currency fluctuations, acquisitions and divestiture rose 2.3%
- For the year, Kraft Afirms forecast of $1.88/share and organic revenue growth of about 3%.
- Sales growth for the quarter was led by the company’s convenient meals and grocery businesses.
- Demand was strongest for its DiGiorno and Jack’s pizza, mac-N-Cheese dinners, and Oscar Meyer deli fresh meats.
- The company’s beverage unit was kept afloat by new marketing from Capri-Sun and Kool-Aid.
- Kraft has been impacted by the economy through consumers substituting their products with store brand names.
- Kraft plans to counter that by holding its own against store brands. This year it has already cut prices on nuts, coffee and cheeses.
- South Beach living frozen meals and HandiSnacks ready-to-eat deserts have been discontinued.
Technical
Was hoping for Kraft to break the down trend line beyond $26.40 today to suggest a new bull run. I have been holding this at the $25 level for a while.
The dividend yield is compensating my willingness to hold this stock. So I am break even.
Source: CNBC
