Packaged foods company Kraft Heinz (NASDAQ:KHC) will be announcing earnings results tomorrow before market hours. Here’s what you need to know.
Kraft Heinz met analysts’ revenue expectations last quarter, reporting revenues of $6.38 billion, down 2.8% year on year. It was a mixed quarter for the company, with full-year EPS guidance slightly topping analysts’ expectations but a slight miss of analysts’ EBITDA estimates.
Is Kraft Heinz a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kraft Heinz’s revenue to decline 2.9% year on year to $6.66 billion, improving from the 7.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kraft Heinz has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Kraft Heinz’s peers in the shelf-stable food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mondelez delivered year-on-year revenue growth of 3.1%, meeting analysts’ expectations, and BellRing Brands reported revenues up 23.8%, topping estimates by 1.2%. Mondelez traded up 2.4% following the results while BellRing Brands was down 4.1%.
Read our full analysis of Mondelez’s results here and BellRing Brands’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the shelf-stable food stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.3% on average over the last month. Kraft Heinz’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $36.05 (compared to the current share price of $28.96).
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