Kraft Tops Profit Forecasts, Sets Spin-Off Date

The company fell short of revenue estimates in the second quarter

   

Kraft Foods (NASDAQ:KFT) said on Thursday that it earned $1.03 billion during the second quarter, up from $976 million in the same period last year.

Quarterly revenue dipped to $13.29 billion, down 4.3% from last year, and missing analysts’ estimate of $14 billion, Reuters noted.

iStock 000006398717XSmall e1294848351861 Kraft Tops Profit Forecasts, Sets Spin Off Date
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Adjusted EPS came in at 68 cents, which beat Wall Street’s forecast of 66 cents.

Investors liked the results. Kraft shares rose more than 4% in Friday morning trading.

The company also announced the date when it will split into two separate companies: its legacy North American grocery business, which will retain the Kraft name, and its international snack food business, which will be renamed Mondelez International.

The companies will become separate entities on October 1.

Kraft reiterated its previous forecast for the full year, anticipating a 9% increase in operating profit and about a 5% gain in revenue for 2012.

The company noted that a rising U.S. dollar had reduced the value of sales outside the U.S.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/kraft-tops-profit-forecasts-sets-spin-off-date/.

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