Dividend.com: Kraft Gets It Done

Kraft Foods' Profit Rises 10%, Beats Expectations

Packaged food products company Kraft Foods(KFT Quote) said Tuesday that its first-quarter profit beat expectations, and it also reiterated its full-year earnings forecast.

The Northfield, Ill.-based company reported first quarter net income of $660 million, or 45 cents per share, up 10% from $599 million, or 39 cents per share, in the year-ago period. Revenue fell 6.5% to $9.4 billion from $10.05 billion in the same quarter last year.

This quarterly profit was enough to beat analyst estimates, but overall revenue fell still short of the average forecast. On average, Wall Street analysts expected a profit of 40 cents a share on revenue of $9.67 billion.

Kraft blamed the stronger dollar's effect on overseas business for bringing down revenue by 7.9%.

The company also reaffirmed its full-year 2009 guidance for a profit of $1.88 per share.

Kraft shares rose $1.37, or 5.4%, in Tuesday morning trading.

We have just placed Kraft Foods back on our "Recommended" list today. We believe the stock is offering an attractive entry point at these levels.

Kraft is a "recommended" dividend stock, holding a Dividend.com DARS Rating of 3.5 out of 5 stars.

CVS Caremark Raises Guidance as Profit Beats Estimates

Pharmacy chain CVS Caremark(CVS Quote) said Tuesday that its first-quarter profit fell by 1% from the same period last year, citing higher costs and acquisition charges.

The Woonsocket, R.I.-based company reported first-quarter net income of $738.4 million, or 50 cents per share, down from $745 million, or 51 cents per share, in the year-ago period. Revenue rose 10%, however, to $23.39 billion from $21.33 billion.