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Kraft Foods reports EPS of 86 cents, vs. expected EPS of 81 cents

Kraft products are offered for sale at Armitage Produce in Chicago, Illinois.
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Kraft products are offered for sale at Armitage Produce in Chicago, Illinois.

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Kraft Foods reported earnings that beat expectations on Tuesday.

The company, however, reported net revenue that dropped by 0.2 percent to $4.35 billion, citing the strong dollar. Wall Street expected Kraft Foods Group to deliver quarterly earnings per share of 81 cents on $4.43 billion in revenue, according to consensus estimates from Thomson Reuters. The company had reported revenue of $4.36 billion in the year-earlier period.

Shares were trading down 1 percent in extended trading.

Read MoreMissed Kraft before the merger? Don't sweat it!

"Our first quarter results reflected a solid start to 2015," said Kraft Chairman and CEO John T. Cahill in a statement. "We've stepped up our focus on execution, our pricing actions over the past year are coming through, and we're benefiting from a disciplined approach to marketing. There is clearly more work ahead of us, but we will continue to build on this momentum to delight our consumers and customers, and prepare us for the next chapter ahead."

Organic net revenues were up 1.1 percent as a result of price increases in previous quarters. The company reported that financials had been boosted by "significant pricing actions taken over the past year as well as a favorable shift in Easter-related shipments versus the prior year."

Net revenue for cheese products increased 1.3 percent, due partly to a reinvention of the Philadelphia soft cream cheese brand. However, the gains were partially offset by a negative impact to volumes from price increases.

Read MoreBuffett's HJ Heinz to merge with Kraft Foods

Last month, Kraft announced a merger with H.J. Heinz to be partly backed by Warren Buffett. His Berkshire Hathaway company will have $9.5 billion worth of common stock in the new company to be headed by Heinz Chief Executive Bernardo Hees. Kraft stock surged after the deal was announced.

In March the company recalled about 242,000 cases of Kraft Macaroni & Cheese Dinner, citing the possibility that some boxes may contain small pieces of metal.

Read MoreKraft recalls 242,000 cases of Mac & Cheese

Shares of Kraft have jumped about 51 percent over the past 12 months to around $86 a share, due in large part to the pending Heinz merger that is expected to close in the second half of this year.

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