Unilever NV (UN), the Netherlands-based manufacturer of food and personal care products including Hellman’s, Breyers, Dove and Vaseline, reported fourth-quarter 2008 earnings on Feb 5 that surprised on estimates by 28.57%.

Since we last reviewed Unilever over a year ago on Jan 25, 2008, the global recession has put a damper on the company’s “Unilever 2010″ strategy developed in 2004.

In its last earnings report, the company decided not to provide guidance for 2009 and would not reaffirm prior 2010 targets.

Fourth quarter earnings were 54 cents per share. Analysts expected 42 cents per share. Net profit, jumped 51% year over year.

Sales grew at 7.3% as price increases peaked at over 9% in the quarter. However, the global recession resulted in volumes declining 1.6%.

The company admitted that it was more or less holding share value in the tough environment but that over the longer term it expects higher growth and margin improvement.

Covering analysts have moved into the optimistic camp in the past month, as full-year 2009 consensus estimates have risen 2 cents to $1.87 per share during that time.

Value Fundamentals

Unilever is now a #2 Rank (buy) stock. It is trading with a forward P/E of 10.4. The company has an outstanding 1-year return on equity (ROE) of 45.01%. Unilever also pays a dividend which is currently yielding 5.50%.

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