Kraft Foods Q4 Profit Falls on Acquisition Costs; Forecast Cut (KFT)

Filed in dividend, earnings, Gold Investment, o, revenue, shares by on February 11, 2011 0 Comments

Packaged foods giant Kraft Foods Inc. ( KFT ) late Thursday said its fourth quarter profit plunged 24% from last year due to Cadbury acquisition costs, and lowered its full-year outlook on cost concerns. The Northfield, IL-based company reported fourth quarter net income of $540 million, or 31 cents per share, compared with $710 million, or 48 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 46 cents per share. Revenue surged 30% from last year, due mostly to the addition of Cadbury revenue, to $13.77 billion. On average, Wall Street analysts expected a matching profit of 46 cents per share, on lower revenue of $13.48 billion. Looking ahead, the company warned that weak consumer confidence and rising ingredient costs would affect its bottom line. Kraft said it now expects 11% to 13% earnings growth for the year, compared with a prior forecast for growth in the “mid-teens.” Kraft shares fell 81 cents, or -2.6%, in premarket trading Friday. The Bottom Line We have been recommending shares of Kraft Foods ( KFT ) since May 5, 2009, when the stock was trading at $24.26. The company has a 3.73% dividend yield, based on last night’s closing stock price of $24.26. Kraft Foods Inc. ( KFT ) is a “Recommended” dividend stock, holding a DARS™ Rating of 3.5 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Kraft Foods Q4 Profit Falls on Acquisition Costs; Forecast Cut (KFT)

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