60.70 +0.01 (0.02%)
After hours: 6:09PM EDT
|Bid||60.60 x 100|
|Ask||61.80 x 400|
|Day's range||60.55 - 61.36|
|52-week range||54.11 - 90.38|
|PE ratio (TTM)||6.72|
|Earnings date||3 Aug 2018|
|Forward dividend & yield||2.50 (3.88%)|
|1y target est||67.67|
Unilever, which saw off a $143 billion approach from Kraft Heinz Co. 18 months ago, is doing just the opposite. On Thursday, the company reported second quarter organic sales growth below analysts' expectations. A strike by truck drivers in Brazil cut first half organic sales growth by 0.6 percentage points.
As we’ve already seen, J.M. Smucker’s (SJM) bottom line is expected to take a hit from rising interest costs. Retaliatory tariffs imposed by Canada are also expected to hurt the bottom line of packaged food companies, including J.M. Smucker, Campbell Soup (CPB), and Kraft Heinz (KHC). Recently, JPMorgan lowered its earnings estimate for J.M. Smucker, stating that among the major packaged food manufacturers, it’s most vulnerable to the recently imposed Canadian surtax.
Mick Jagger famously could get no satisfaction. UBS last week published its latest analysis of 23,000 reviews posted on Glassdoor for 19 consumer staples companies between 2015-2018. The happiest employees are to be found among a group of European and US staples companies.
Recently, J.P. Morgan lowered its EPS estimates for J.M. Smucker (SJM) due to trade war tensions. J.P. Morgan expects Canada’s retaliatory tariffs to hurt J.M. Smucker the most among all food companies. The investment bank now estimates SJM’s EPS to be $8.29 and $8.83 in fiscal 2019 and fiscal 2020, respectively, down from earlier estimates of $8.56 and $9.15.
The pullback in the stocks of packaged food companies has resulted in lower valuations for these companies. The stocks of most food companies are trading well below their historical averages. Despite their valuation multiples, investors haven’t budged due to sales and margin headwinds that are likely to affect the stocks.
The stocks of Kraft Heinz (KHC), Campbell Soup (CPB), Tyson Foods (TSN), and J.M. Smucker (SJM) are reeling under pressures from soft demand and higher costs related to commodities and logistics. To add to their woes, retaliatory tariffs imposed by China, Mexico, Canada, and the European Union could further dent their financials. In retaliation to President Trump’s higher tariffs on the imports of certain steel and aluminum products, Canada imposed 10% tariffs on soups, broths, and tomato ketchup and sauces, which could likely affect the financials of Campbell Soup and Kraft Heinz.
Conagra Brands (CAG), another food manufacturer whose stock has traded positively this year, is among the very few food companies for which analysts have a positive outlook. Analysts also favor “buy” for Kraft Heinz (KHC) and Mondelēz (MDLZ) stock.
Well that didn't last long. Shares of Campbell Soup (CPB) and Kraft Heinz (KHC) are lower Tuesday, a day after they got a boost from rumors that Kraft might buy the soup maker. Analysts weren't bowled over by the combination yesterday, and that lack of enthusiasm continued today. Bernstein's Alexia Howard reiterated an Outperform rating on Kraft, but warns that buying Campbell "will not solve the company's 'perception problem.'" Like, others, Howard thinks that a deal would be earnings accretive to Kraft.
Kraft Heinz looks keenly interested in buying Campbell Soup (CPB), which has been struggling with its soups and C-Fresh businesses for quite some time.
Campbell Soup Co. shares jumped 9% in Monday trading after reports that Kraft Heinz Co. is interested in a takeover, but analysts don’t think a deal will take place. The New York Post reported on Friday that Kraft Heinz (KHC) is “very much interested in buying Campbell,” and believes the sales process is imminent. Kraft Heinz had no comment when MarketWatch reached out.
Bloomberg's Craig Giammona reports on the speculation that Kraft Heinz Co. could be eyeing Campbell Soup Co. He speaks on "Bloomberg Markets." (Source: Bloomberg)
Campbell Soup stock (CPB) soared more than 9.5% this afternoon as the New York Post reported that Kraft Heinz (KHC) is “very interested” in acquiring the beleaguered soup company. The news comes as Campbell Soup’s strategies and portfolio are under scrutiny and management is looking for ways to turn its business around. Campbell Soup has been struggling. The company’s soups and beverages segment continues to underperform, and the much-hyped Fresh segment failed to have a meaningful impact on financials amid operational challenges.
Shares of Campbell Soup (CPB) are piping hot Monday morning, on reports from the New York Post that Kraft Heinz (KHC) may be interested in buying the packaged-foods company. Campbell stock, down 21% in the past year, could sure use the boost. Not that Kraft has fared much better, as it's off 18% in the past 12 months.
Kraft Heinz Co. is considering a sale of children’s milk drink brand Complan in India, which could fetch about $1 billion, people familiar with the matter said. Kraft Heinz is working with an adviser to gauge interest in the business, according to the people, who asked not to be identified because the matter isn’t public. The brand could attract local companies and private equity firms, the people said.