Shares in Kraft Foods Group fell in after-hours trading in New York despite the US food company posting higher underlying second-quarter profits and sales after its results fell below Wall Street expectations.
Kraft, the owner of brands including Oscar Mayer meats and Jell-O desserts, booked earnings per share of US$0.80 for the three months to 28 June. The result compared to US$1.38 a year earlier when Kraft’s bottom line was boosted by a gain from a employment benefit plan. Excluding that item, Kraft’s earnings per share were up year-on-year.
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However, the consenus forecast among Wall Street analysts was for Kraft’s reported earnings per share to reach US$0.82.
The company’s net revenues were up 0.7% at US$4.75bn. On an organic basis, sales increased 1.5%. Refrigerated meals and snack sales were up, although sales from Kraft’s meats and desserts division were down.
Wall Street had forecast net sales of US$4.64bn.
Shares in Kraft were down 1.29% at US$56.50 in after-hours trading.
