Kraft (KFT) Looks for Strong Q3 Amid Cadbury Integration
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Price: $42.52 --0%
Rating Summary:
6 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 12 | New: 12
Rating Summary:
6 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 12 | New: 12
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Shares of Kraft Foods Inc. (NYSE: KFT) are up $0.40 or 1.27 percent to $31.97 in midday market movement on Thursday ahead of the company's third-quarter earnings release scheduled for after the closing bell.
The largest food maker in the U.S. is expected by analysts to report earnings of $0.46 per share on revenue of $12.01 billion.
In the second quarter, Kraft reported earnings of $0.60 per share, beating the analyst estimate of $0.52 per share. The company reported second-quarter revenue of $12.3 billion, compared to the consensus of $12.33 billion.
Since the start of the third quarter, shares of Kraft are up $2.22 or 7.46 percent. Year-to-date the stock is up $4.79 or 17.62 percent.
A valuation shows that Kraft is going for a forward P/E of 18.65x full year 2010 estimates.
Data from Bloomberg shows that 16 analysts have a Buy rating on the stock, 7 have a Hold and zero have a Sell. The average analyst price target on Kraft is $34.40 with a target range of $30 to $38.
Analyst Comments
Deutsche Bank maintains a Hold on Kraft with a price target of $31 ahead of the company's earnings.
Deutsche Bank analyst says, "Investors will likely focus on top line quality in light of the difficult U.S. marketplace. We expect the promotional environment and questions about higher prices into 2011 to be a key topic. Finally, updates on M&A integration as well as the performance of Cadbury’s categories globally will be of interest."
On October 26, Goldman Sachs analysts raised their price target on Kraft from $33 to $35 while maintaining a Neutral rating on the stock.
Goldman Sachs analyst says, "We have raised our price growth assumption and KFT should still benefit from cost synergies and ongoing efficiencies. However,
a higher cost outlook for 2011, joined with a mixed top-line trend in NA, is likely to lower the potential for KFT to over-deliver on earnings next year."
The largest food maker in the U.S. is expected by analysts to report earnings of $0.46 per share on revenue of $12.01 billion.
In the second quarter, Kraft reported earnings of $0.60 per share, beating the analyst estimate of $0.52 per share. The company reported second-quarter revenue of $12.3 billion, compared to the consensus of $12.33 billion.
Since the start of the third quarter, shares of Kraft are up $2.22 or 7.46 percent. Year-to-date the stock is up $4.79 or 17.62 percent.
A valuation shows that Kraft is going for a forward P/E of 18.65x full year 2010 estimates.
Data from Bloomberg shows that 16 analysts have a Buy rating on the stock, 7 have a Hold and zero have a Sell. The average analyst price target on Kraft is $34.40 with a target range of $30 to $38.
Analyst Comments
Deutsche Bank maintains a Hold on Kraft with a price target of $31 ahead of the company's earnings.
Deutsche Bank analyst says, "Investors will likely focus on top line quality in light of the difficult U.S. marketplace. We expect the promotional environment and questions about higher prices into 2011 to be a key topic. Finally, updates on M&A integration as well as the performance of Cadbury’s categories globally will be of interest."
On October 26, Goldman Sachs analysts raised their price target on Kraft from $33 to $35 while maintaining a Neutral rating on the stock.
Goldman Sachs analyst says, "We have raised our price growth assumption and KFT should still benefit from cost synergies and ongoing efficiencies. However,
a higher cost outlook for 2011, joined with a mixed top-line trend in NA, is likely to lower the potential for KFT to over-deliver on earnings next year."
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