NEW YORK (TheStreet) -- Shares of Kraft Foods Group Inc. (KRFT) are down by -2.52% to $55.80 in pre-market trading on Thursday, following the company's 2014 second quarter earnings results, which failed to meet analyst expectations.
The food and beverage company said net income for the most recent quarter was $482 million, or 80 cents per share, compared to $829 million, or $1.38 per share for the 2013 second quarter.
Analysts polled by Thomson Reuters were expecting earnings per share of 83 cents for the quarter.
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Kraft said revenue was $4.75 billion for 2014's second quarter versus $4.72 billion for the year ago period. Analysts were expecting revenue of $4.84 billion. Additionally, as a result of its second quarter earnings, Kraft Foods was downgraded to "hold" from "buy" at Deutsche Bank (DB). The firm cut its price target on the stock to $59 from $62. TheStreet Ratings team rates KRAFT FOODS GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate KRAFT FOODS GROUP INC (KRFT) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet." KRFT data by YCharts
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