Kraft 2Q profit drops 42 percent, misses forecast

MarketsAssociated Press

Kraft Foods Group Inc. on Wednesday reported net income that declined by 42 percent in its second quarter, and missed analysts' expectations.

The Northfield, Illinois-based company said earnings fell to $482 million, or 80 cents per share, from $829 million, or $1.38 per share, in the same quarter a year ago. The average per-share estimate of analysts surveyed by Zacks Investment Research was for earnings of 83 cents.

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The company posted revenue of $4.75 billion compared with $4.72 billion in the same quarter a year earlier, and missed Wall Street estimates. Analysts expected $4.88 billion, according to Zacks.

Kraft Foods shares have climbed $3.33, or 6.2 percent, to $57.24 since the beginning of the year, while the Standard & Poor's 500 index has climbed 6.6 percent. The stock has increased 66 cents, or 1.2 percent, in the last 12 months.