Kraft posts
Posted Jul 7th 2009 12:00PM by Steven Halpern
Filed under: Pfizer (PFE), Newsletters, AT and T (T), Caterpillar (CAT), Verizon Communications (VZ), duPont(E.I.)deNemours (DD), Merck and Co (MRK), Kraft Foods'A' (KFT), DJIA, Stocks to Buy
"Following last year's dismal market performance, investors are looking for something they can be sure of in the year ahead; and for income investors, that means finding a safe and rewarding dividend yield," says Carla Pasternak.
In her High Yield Investing, she offers a fascinating review to find the "safest dividend in the Dow." Here's her assessment.
"The 30 members of Dow Jones Industrial Average represents some of the strongest names in America. So these corporate titans are a good place to start searching for the safest dividend.
"The first step in the process is not to look at the Dow at all, but to start with the 10-year Treasury note, currently yielding 3.86%.
Continue reading The safest dividend in the Dow
Posted Jun 25th 2009 3:50PM by Steven Mallas
Filed under: Earnings reports, Campbell Soup (CPB), Kellogg Co (K), ConAgra Foods (CAG), Kraft Foods'A' (KFT)

Food processor
ConAgra (NYSE:
CAG), whose products share space at the supermarket with
Kraft (NYSE:
KFT),
Kellogg (NYSE:
K), and
Campbell Soup (NYSE:
CPB), is down in Thursday's afternoon trading by over 6% as I write this. The company released earnings for the fourth quarter earlier this morning. Sales increased 8% according to the
press release. Adjusted earnings from continuing operations came in at 41 cents per diluted share. This result benefited from an extra week.
The per-share profit compared very favorably to the 18 cents earned in last year's similar quarter. However, in terms of analyst expectations, the performance was relatively unimpressive. Earnings.com indicates that 41 cents is what the market was looking for.
Continue reading ConAgra only meets expectations, but is stock cheap?
Posted Jun 11th 2009 2:50PM by Steven Mallas
Filed under: Earnings reports, ConAgra Foods (CAG), General Mills (GIS), Kraft Foods'A' (KFT)
Shares of Del Monte (NYSE: DLM) are up over 9% in early afternoon trading. And the volume is doing gangbusters business. The market is responding to the company's fourth-quarter results. The numbers did tell an overall fun story.
To begin with, revenues saw a big jump of 20%. As many news items have pointed out, price increases helped out. It should also be pointed out that the company's press release indicated that an extra week skewed things a bit. That's okay, though, it was still a good top-line performance. Earnings per share from continuing divisions came in at $0.35, which meant that Del Monte grew the bottom line by 75% (a couple elements affecting the perception of this profit expansion was a better tax situation linked to a positive change in California tax code and a $0.04 per-share transformation expense recorded in Q4 2008). Analysts said the company might earn $0.26 per share. That's a pleasant difference, isn't it?
Continue reading Del Monte's Q4 rocked -- buy or sell on the news?
Posted May 28th 2009 3:20PM by Steven Mallas
Filed under: Earnings reports, Kellogg Co (K), Kraft Foods'A' (KFT)
Heinz (NYSE: HNZ), whose supermarket colleagues include Kraft (NYSE: KFT) and Kellogg (NYSE: K), reported Q4 numbers earlier today. Can't say they were the stuff of a growth investor's dreams. Earnings per share came in at $0.55 versus $0.61 in Q4 of last year. The top line had trouble because of currency effects. Sales dropped over 5%. However, organic revenues increased over 5%. Unfortunately, volume decreased 2%. As can be seen, things aren't totally awesome at Heinz.
The company came in one penny ahead of expectations according to my earnings preview. Other sources say Heinz essentially met expectations. No matter what, management has its work cut it out for it in terms of offsetting currency woes and getting those volume stats on the rise.
Continue reading Heinz has a lackluster Q4
Posted May 27th 2009 3:00PM by Steven Mallas
Filed under: Earnings reports, Forecasts, Campbell Soup (CPB), Kellogg Co (K), Kraft Foods'A' (KFT)
Heinz (NYSE: HNZ) is set to report Q4 data before the opening bell on Thursday, May 28. How will the company do? And by that I mean, will it beat the earnings expectation?
In general, that's what the market looks for. Sometimes the market cares more about beating the analyst game than it does about profit growth. Might sound strange, but that's what you see from time to time. Of course, even when a company beats, it may not make much of a difference when it comes to price action (I'll get to that in the last paragraph).
I think Heinz will indeed beat on the bottom line. I'm going by recent history here. According to Earnings.com, Heinz is expected to report 54 cents per share tomorrow. The company went beyond the call in the first three quarters of its fiscal year. Why miss on the last quarter of the year? I think the trend is in on this one.
Continue reading Earnings preview: Will Heinz surprise the market?
Posted May 23rd 2009 4:10PM by Steven Mallas
Filed under: Earnings reports, Campbell Soup (CPB), Kellogg Co (K), General Mills (GIS), Kraft Foods'A' (KFT)
Campbell Soup (NYSE: CPB) served up a tasty broth of estimate-beating soup this past Friday. According to Trey Thoelcke's earnings preview, the market was looking for $0.42 per share and $1.8 billion in net sales. Well, according to Jon Ogg's coverage, Campbell delivered $0.48 per share and roughly $1.7 billion in net sales. So, revenues came in somewhat soft, but the bottom line was a success as far as Wall Street was concerned.
One thing Campbell investors want to look at is the gross margin. This metric tells you how the company is doing in terms of cost control. The press release stated that gross margin went up to an adjusted 40.3%. Last year at this time, management reported a gross margin of 38.6%. Pricing helped out, as well as efficiency initiatives. It's cool to see that Campbell can leverage price actions to propel its gross margin. It shows the power of its brand equity.
Continue reading Campbell Soup goes beyond expectations in Q3 -- buy/sell?
Posted May 1st 2009 8:30AM by Steven Mallas
Filed under: Earnings reports, Johnson and Johnson (JNJ), Colgate-Palmolive (CL), Procter and Gamble (PG), Kraft Foods'A' (KFT)
Procter & Gamble (NYSE: PG) might not have the best growth rates going these days, but truth be told, I thought the company's Q3 report was acceptable given everything that is going on.
Yes, sales declined by 8%, driven by currency effects. Organic sales, however, increased 1%. Earnings per share increased 2% to 84 cents. This beat Wall Street forecasts by four pennies according to this source.
Continue reading Procter & Gamble beats in Q3, had a passable quarter
Posted Apr 23rd 2009 3:00PM by Steven Mallas
Filed under: Earnings reports, Hershey Co (HSY)
Hershey (NYSE:
HSY) did a good job in its
first quarter of the year. The big confectioner said it earned $0.38 per share on an adjusted basis. According to this news
article, that beat the analysts by three solid pennies.
Not only did the bottom line fare well, but the top line didn't do so badly, either. It increased well over 6%. Okay, that's not a rocketing growth rate, certainly, but all things considered, I think it was a decent performance. Hershey benefited from pricing strategies and the Easter holiday. If you ask me, I think the recent rally in the markets helped to bolster consumer confidence. That may have helped Hershey sell a lot of its candy. Management seemed pretty pleased with volume trends and the response to its marketing initiatives, judging by comments made in the release.
Continue reading Hershey has solid Q1, but is the stock too strong to buy?
Posted Mar 16th 2009 5:10PM by Steven Mallas
Filed under: Earnings reports, Forecasts, Wal-Mart (WMT), Campbell Soup (CPB), Kellogg Co (K), General Mills (GIS), Kraft Foods'A' (KFT)
General Mills (NYSE: GIS), a cereal manufacturer whose colleagues at the supermarket include Kellogg (NYSE: K), Kraft (NYSE: KFT), and Campbell Soup (NYSE: CPB), is all set to report earnings on Wednesday, March 18. This will be for the third quarter, and according to the following source, analysts are expecting $0.88 per share. It won't be an impressive performance if General Mills merely meets expectations. In the previous year's Q3, the company did $0.87 per share. Obviously, $0.88 wouldn't be much in terms of growth.
Continue reading Earnings preview: Will General Mills top estimates?
Posted Mar 5th 2009 8:30AM by Steven Mallas
Filed under: Earnings reports, Wal-Mart (WMT), Costco Wholesale (COST), Procter and Gamble (PG), Kraft Foods'A' (KFT)
Costco (NASDAQ: COST), a warehouse club that competes with BJ's Wholesale Club (NYSE: BJ) and Wal-Mart (NYSE: WMT), reported earnings for the second quarter on Wednesday. The company experienced a significant drop in the bottom line. Costco earned 54 cents per share on a diluted basis. That represented a decline of 26%. Analysts thought that 59 cents per share was doable. It wasn't. Net sales dropped 1%. Excluding gasoline and currency effects, same-store sales went up by 5% overall during the quarter (including those items, comps declined 3%).
Well, now, what does this tell us about Costco? It tells us that the whole thesis that people will be looking to save money by shopping at warehouse clubs doesn't necessarily translate into a successful earnings picture. Hey, what can you do? We're in a grand recession. And it's getting worse. Of course, it should be noted that Costco management must strive to work even harder to get people to spend more money in their stores. In fact, BJ's did pretty well with its numbers: Costco's competitor beat the analysts, even after adjustments.
Continue reading Costco misses estimates, near 52-week low -- buy or avoid?
Posted Feb 24th 2009 8:15AM by Steven Mallas
Filed under: Earnings reports, Wal-Mart (WMT), Campbell Soup (CPB), General Mills (GIS), Kraft Foods'A' (KFT)
Campbell Soup (NYSE: CPB) reported earnings for the second quarter, and while they weren't that great in terms of growth, they did beat Wall Street expectations. The bottom line came in at an adjusted 65 cents per share from continuing operations. Analysts were expecting 64 cents per share. I know, a one-penny beat isn't necessarily something to crow about, especially when Campbell grew income from continuing operations by only a single penny on a year-over-year basis. In this market, though, this is the stuff of dreams.
In fact, I bet Campbell's shares would have been higher on the news if it wasn't for the fact that the Dow is getting closer and closer to the 7,000 mark (and, please don't worry, we'll see a Dow reading that begins with a 6 before you can scream sell!).
Continue reading Campbell Soup beats in Q2, but it may not be that defensive in this market
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