The Dividend Daily

Packaged foods giant Kraft Foods Inc. (KFT) said late Tuesday that its third quarter profit fell from last year, when results were bolstered by a big one-time gain, but results still beat analyst estimates.

The Northfield, Illinois-based company posted third quarter net income of $824 million, or 55 cents per share, compared with $1.36 billion, or 91 cents per share, in the year-ago period. Last year’s results included a 57 cent per-share gain from its now-sold Post Cereal business.

Revenue fell almost 6% from last year, to $9.8 billion.

On average, Wall Street analysts expected a lower profit of 48 cents per share, on higher revenue of $10.32 billion.

Looking ahead, the company boosted its full-year profit forecast to $1.97 per share, up from prior guidance for $1.93 per share. Analysts currently expect $1.97 for the year.

Kraft also said that it will continue its pursuit of acquiring candy maker Cadbury plc (CBY), but didn’t give any details about alterations to its current offer. British regulators have set Nov. 9 as the deadline for a firm bid on Cadbury, or else Kraft will be forced to walk away for at least six months before another proposal can be made.

Kraft Foods shares fell 62 cents, or -2.3%, in premarket trading Wednesday.

The Bottom Line
We have been recommending shares of KFT since May 5, when the stock was trading at $24.26. The company has a 4.21% dividend yield, based on last night’s closing stock price of $27.54.

Kraft Foods Inc. (KFT) is a “recommended” dividend stock, holding a Dividend.com 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.