Financial News
Kraft Heinz (KHC) Reports Earnings Tomorrow: What To Expect
Packaged foods company Kraft Heinz (NASDAQ:KHC) will be reporting results tomorrow before the bell. Here’s what to expect.
Kraft Heinz missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $6.48 billion, down 3.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue growth 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 2.3% year on year to $6.42 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.74 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 8 downward revisions over the last 30 days (we track 13 analysts). Kraft Heinz has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Kraft Heinz’s peers in the shelf-stable food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Simply Good Foods delivered year-on-year revenue growth of 17.2%, meeting analysts’ expectations, and General Mills reported a revenue decline of 1.2%, in line with consensus estimates. Simply Good Foods traded up 3.8% following the results while General Mills’s stock price was unchanged.
Read our full analysis of Simply Good Foods’s results here and General Mills’s results here.
Investors in the shelf-stable food segment have had fairly steady hands going into earnings, with share prices down 1.1% 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 $40.05 (compared to the current share price of $35.07).
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