On Thursday, the Northfield, IL-based firm, Kraft Foods posted its second quarter results, which were more than it had forecasted. The Company earned $937million, or 53 cents per share in the second quarter, in contrast to the $827 million, or 56 cents per share, a year back. Adjusted profit was 60 cents a share, barring one-time items.
The Company said that its second-quarter results reveal better-than-expected proceeds, and its acquisition of Cadbury, coalesced with investments for expansion, will definitely lead to more earnings.
While analysts of Wall Street had forecasted a profit of 52 cents a share, Kraft was able to earn. Also, the possession of Cadbury was helpful in boosting the profits by 25% taking it to $12.3 billion. The analysts had forecasted the same.
Analysts from Credit Suisse deem that Kraft is capable of outshadowing its U.S. rivals, if it manages to secure a 5% sales growth in the latter half of the year, with little aid from retail collaborator, Walmart.
Kraft is now hoping for $750 million cost savings from the incorporation of Cadbury, higher than the previous estimate of $675 million.
On Friday, in premarket trading, shares of the Company surged 84 cents, or +2.8%.
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