Kraft Foods Inc. (
) shares are lower heading into its first-quarter 2012 report,
expected out after the market closes Thursday.
Analysts are currently modeling Kraft to report EPS of 56 cents on
revs of $13.0 billion. Numbers compare with EPS of 52 cents and
revs of $12.6 billion reported in the same period last year and EPS
of 57 cents and revs of $14.7 billion.
Shares of Kraft rose 2.5 percent through the quarter to $38.01 at
the end of March. For a comparison, Kraft rose just 0.5 percent in
the same period last year.
Data from Bloomberg has 15 analysts with a Buy on Kraft, five at
hold, and one with a Sell rating. The Street's price target average
is $43, with a low of $37 and high of $46.
- JPMorgan sees EPS of 59 cents. The firm is positive on Kraft
into numbers, recently upgrading the stock from Neutral to
Overweight. JPMorgan commented: "Besides our optimism about
fundamentals, we also think Kraft will push hard to drive strong
earnings into one of the most important investor events in its
history: the pending separation of GroceryCo and SnackCo,
scheduled for 4Q12."
In addition, JPMorgan likes Kraft's GroceryCo. and its potential
for a very robust dividend payout.
- Deutsche Bank expects EPS of 55 cents. Though the firm is
positive on the split of Kraft, sum-of-the-parts analysis shows
that, until SnackCo. and GroceryCo. produce meaningful free cash
flow improvement, shares will be mostly range bound.
The firm issued the following Points of Focus: "Quarterly
fundamentals and quality may not be important to stock
performance leading up to the split. This was in evidence when
4Q11 results were released. Consumer weakness will still likely
prompt questions around the company's trends in key markets along
with inquires as to capital structure and specific
Stay tuned to StreetInsider.com's
section to see our analysis of the highly-anticipated quarterly
results within seconds of their release. You can also check out
Kraft's past performance at Streetinsider's
Kraft's Income Statement