Packaged foods company Kraft Heinz (NASDAQ: KHC) will be reporting earnings this Wednesday before market open. Here’s what investors should know.
Kraft Heinz beat analysts’ revenue expectations last quarter, reporting revenues of $6.26 billion, down 1.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ organic revenue estimates and a miss of analysts’ gross margin estimates.
Is Kraft Heinz a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Kraft Heinz’s revenue to decline 2.5% year on year, in line with the 2.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Kraft Heinz has missed Wall Street’s revenue estimates multiple 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. Conagra’s revenues decreased 1.4% year on year, meeting analysts’ expectations, and Hershey reported revenues up 3%, topping estimates by 0.8%. Conagra traded down 6.6% following the results while Hershey was up 1.1%.
Read our full analysis of Conagra’s results here and Hershey’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 8.3% on average over the last month. Kraft Heinz is up 14.2% during the same time and is heading into earnings with an average analyst price target of $24.69 (compared to the current share price of $24.94).
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