This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sara Lee Misses on Higher Food Costs

DOWNERS GROVE, Ill. ( TheStreet) -- Sara Lee (SLE) missed quarterly expectations by a penny per share due to higher food costs, though the company more than doubled its profits in the period.

Sara Lee's net income rose 137% to $880 million, or $1.37 per share, compared with $371 million, or 53 cents per share, in the year-earlier quarter.

Sara Lee

Sara Lee's adjusted quarterly earnings fell to 24 cents per share, from 27 cents, when excluding one-time items, including an 84-cent gain related to the sale of its global body care and European detergents businesses in December and a 35-cent tax benefit related to the sale of its North American Fresh Bakery business.

Despite the adjustments, bottom-line results missed expectations for earnings of 25 cents per share. Analysts typically exclude such extraordinary items when forecasting estimates.

Top-line sales of $2.35 billion, down slightly year-over-year from revenue of $2.36 billion, also missed expectations even as Sara Lee saw strength in its core North American retail and international beverage units.

Disappointed investors bid Sara Lee shares 0.5% lower to $16.84 in early trading Tuesday, though the company reaffirmed its 2011 earnings and revenue guidance.

Sara Lee said its weaker-than-expected results in the recent quarter reflected higher food costs, which offset higher prices.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CL $70.92 0.00%
HSY $93.11 0.00%
K $76.81 0.00%
PG $80.12 0.00%
SYY $46.07 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs