Packaged foods company Kraft Heinz (NASDAQ: KHC) will be reporting results this Wednesday before the bell. Here’s what to expect.
Kraft Heinz beat analysts’ revenue expectations last quarter, reporting revenues of $6.05 billion, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ gross margin estimates but a significant miss of analysts’ organic revenue 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 3.6% year on year, a further deceleration from the 1.9% 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 Q2 results, giving us a hint as to what we can expect. Lamb Weston delivered year-on-year revenue growth of 5.6%, beating analysts’ expectations by 4.8%, and Hershey reported revenues up 6.6%, topping estimates by 5.7%. Lamb Weston traded up 8% following the results while Hershey was down 4.8%.
Read our full analysis of Lamb Weston’s results here and Hershey’s results here.
Investors in the shelf-stable food segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Kraft Heinz is up 6.3% during the same time and is heading into earnings with an average analyst price target of $24.21 (compared to the current share price of $26.38).
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