Yahoo Finance Kraft Heinz (KHC) Queued for Q1 Earnings: Things to Note
The Kraft Heinz Company KHC is likely to register top-line growth when it reports first-quarter 2023 earnings on May 3. The Zacks Consensus Estimate for revenues is pegged at $6,386 million, suggesting a jump of 5.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at 60 cents per share. The projection is in line with the year-ago quarter’s reported figure.
The Kraft Heinz Company has a trailing four-quarter earnings surprise of 11.2%, on average. This food and beverage product company delivered an earnings surprise of 10.4% in the last reported quarter.
We expect first-quarter revenues to grow 4.1% to $6,294.7 million and adjusted earnings per share (EPS) to decline 2.9% to 58 cents.
Kraft Heinz Company Price, Consensus and EPS Surprise
Kraft Heinz Company price-consensus-eps-surprise-chart | Kraft Heinz Company Quote
Factors to Consider
The company has been benefiting from robust pricing efforts amid cost inflation. Solid pricing efforts boosted KHC’s quarterly net sales in the last reported quarter. In the North America segment, pricing moved up 14.2 percentage points, and the International segment pricing moved up 18.5 percentage points. The continuation of these upsides bodes well in the face of cost inflation.
Kraft Heinz has been grappling with the rising inflationary environment for a while now. On its last earnings call, management highlighted that it expects high-single-digit inflation during 2023. This raises concerns for the quarter under review.
However, a focus on the operating model (laid out in September 2020) has been working well. The model incorporates five key elements, which include People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth.
Additionally, management is on track with transformation efforts. To this end, the company’s AGILE@SCALE strategy has been enhancing its agile expertise and capabilities via partnerships with technology giants and cutting-edge innovators.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for The Kraft Heinz Company this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
The Kraft Heinz Company has a Zacks Rank #3 and an Earnings ESP of +1.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
e.l.f. Beauty, Inc. ELF has an Earnings ESP of +3.77% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for its quarterly revenues is pegged at $155.1 million, which suggests growth of 47.5% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for e.l.f. Beauty’s quarterly earnings has been unchanged in the past 30 days at 19 cents per share, implying growth of 46.2% from the year-ago quarter’s reported number. ELF has a trailing four-quarter earnings surprise of nearly 105%, on average.
Sysco Corporation SYY currently has an Earnings ESP of +3.07% and a Zacks Rank of 3. The company is likely to register a top-and-bottom-line increase when it reports third-quarter fiscal 2023 results. The consensus mark for SYY’s quarterly revenues is pegged at $18.7 billion, which suggests a jump of 10.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Sysco’s bottom line has remained unchanged at 92 cents per share in the past 30 days. The consensus estimate indicates a 29.6% improvement from the year-ago quarter’s figure.
TreeHouse Foods THS has an Earnings ESP of +19.75% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for its quarterly revenues is pegged at around $849 million, which suggests a decline of 25.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for TreeHouse Foods’ quarterly earnings has moved up 5.4% in the past 30 days to 39 cents per share against the year-ago quarter’s reported figure of a loss of 15 cents. THS has a trailing four-quarter earnings surprise of 48.8%, on average.
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Sysco Corporation (SYY) : Free Stock Analysis Report
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Kraft Heinz Company (KHC) : Free Stock Analysis Report
e.l.f. Beauty (ELF) : Free Stock Analysis Report
