Kraft (KFT) posted solid fourth-quarter results Tuesday that continued to show the firm’s pricing power. Though we liked the quarter, we remain on the sidelines with respect to Kraft’s shares until after the company separates the firm into two entities later this year: a global-snacks company and a North American grocery products firm. At that time, we’ll be better able to evaluate the investment merits of each separate entity to optimally allocate our capital to the one with the most promise, if such an opportunity presents itself. Kraft’s fourth-quarter revenue jumped 6.6% thanks to a 6.1% jump in organic net revenues, as strong pricing offset declines in volume. However, cost of sales still outpaced revenue expansion, as gross profit growth was a meager 2%. Still, adjusted operating income in the fourth quarter grew 7.4%, to $1.7 billion, during the period as the company managed to keep a tight lid on overhead expenses. Though the company benefited tremendously from a lower tax rate in the quarter, Kraft’s fourth-quarter diluted earnings-per-share was $0.47 (up over 51%), with operating earnings-per-share coming in at $0.57, up nearly 24% and matching consensus forecasts. Looking ahead, the maker of Kraft cheese expects 2012 organic net revenue growth of about 5% and operating earnings-per-share growth of at least 9%, consistent with its long-term targets and our expectations. Our fair value estimate remains unchanged.