Kraft Foods (NASDAQ:KRFT), the newly independent company that was spun-off from its parent last month, reported stronger-than-expected third-quarter earnings and sales on Wednesday and reaffirmed its full-year guidance.
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The North American grocery business operating brands such as Oscar Mayer and Kraft cheese posted net earnings of $470 million, or 79 cents a share, compared with a year-earlier profit of $417 million, or 70 cents.
Analysts in a Thomson Reuters poll were looking for earnings of just 69 cents.
A reflection of stronger volumes and pricing as well as increased advertising investment, revenue for the three-month period ended Sept. 30 grew 3% to $4.61 billion from $4.47 billion a year ago, edging above the Street’s view of $4.56 billion.
"We have an excellent foundation as a new and independent Kraft, and we're confident we have what it takes to fulfill our mission of becoming the best food and beverage company in North America," Kraft CEO Tony Vernon said in a statement.
Kraft Foods spun-off from its similarly named parent on Oct. 1. The parent has since been re-branded as Mondelez International and focuses on the non-U.S. Kraft brads such as Cadbury and Nabisco.
Looking toward fiscal 2013, Kraft reaffirmed its GAAP EPS view of $2.60 and said revenue is expected to grow in line with the North American food and beverage market.
The consensus, excluding special items, is looking for full-year earnings of $2.66 on sales of $19.28 billion.