Sara Lee Corp. (SLE) gapped open on its strong Q1 results from early November on lower costs and strong North American sales, driving shares to a new 52-weke high above $12.

Company Description

Sara Lee develops and manufactures a wide range of branded packaged food products under brands like Sara Lee, Ball Park and Jimmy Dean worldwide. The company was founded in 1939 and has a market cap of $8.61 billion.

Shares of SLE have posted big gains this year, rallying with the market after bottoming out in early March. The company’s first-quarter results, reported on Nov 4, gave shares an extra boost.

First-Quarter Results

Sales were down 7.4% from last year to $2.6 billion. But earnings came in better than expected at 32 cents, 15 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 3 quarters by an average of 52%.

Sara Lee noted that its results were driven by a strong showing in North America and lower input costs on deflated commodity prices.

Estimates Advance

The solid quarter and optimistic view lifted estimates, with the current year adding 2 cents to 95 cents. The next-year estimate also added 2 cents, moving to $1.03, an 8% growth projection.

Valuation

Based on the current-year estimate, shares of SLE have a forward P/E multiple of 13, a discount to the overall market. Sara Lee also boasts a 3.6% dividend yield.

The Chart

Shares of SLE gapped open higher on the strong quarterly results, hitting a new 52-week high at $12.61. Since then, shares have traded mostly sideways, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.

Zacks Investment Research

1. (PG) The Procter & Gamble Company Acquires Ambi Pur Brand From Sara Lee CorporationThe Procter & Gamble Company (PG) signed an agreement to acquire the Ambi Pur Brand...
2. (BUCY) Bucyrus International Incorporated – Earnings Estimates Advance HigherBucyrus International Inc. (BUCY) is pressuring a short-term level of resistance just above $55 after...
3. (AAP) Advance Auto Parts Outdoes EstimatesAdvance Auto Parts (AAP) posted a profit of 69 cents per share, before special items,...
4. (HLF) Herbalife Limited – Earnings Estimates AdvanceHerbalife Ltd. (HLF) recently spiked higher after reporting better than expected third-quarter results. Company Description...
5. (INT) World Fuel Services Corporation – Earnings Estimates ClimbWorld Fuel Services Corp. (INT) just reported better than expected Q3 results, making it four...
6. (SONE) S1 Corporation – Full-year estimates for 2008 and 2009 are higher since the earnings announcementS1 Corp. (SONE) has built a nice head of steam following solid third-quarter results. Shares...

Search Posts by Tag: Sara Lee Corporation | SLE | Consumer Goods | Processed & Packaged Goods

RSS Feeds by Tag: Sara Lee Corporation | SLE | Consumer Goods | Processed & Packaged Goods |

Other Posts by: vitalstocks | RSS Feed for this author