Kraft's Guidance 'Raise' Is Misleading By Scott Rothbort About this article: For Rothbort's preview heading into the Kraft conference call, please click here. Kraft's (KFT) management increased fiscal 2009 EPS guidance by 4 cents, to $1.97, but this is a misleading announcement as analysts' consensus was already at $1.97 and the company beat third-quarter 2009 estimates by 7 cents. This guidance is also factoring additional costs of 2 cents to 3 cents associated with the proposed Cadbury (CBY) acquisition and lower tax rates. As has been the norm for corporate America, the strong U.S. dollar put a dent into Kraft's results. To the company's credit, it has scaled out of unprofitable businesses and focused on growth in international emerging markets. Strong brand recognition has helped Kraft in its domestic markets as well. I am not quite sure what to make of the Cadbury acquisition. In some respects, it looks strategically astute, while on other accounts it could be a costly... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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