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Food Stocks Releasing Earnings this Week: MDLZ, HSY & More
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The Q2 results announced so far portray a picture of improvement from weak results of the past quarters. According to an earnings preview report, of the 126 S&P 500 members that have reported Q2 results so far, 70.6% have beaten EPS estimates and 55.6% have come ahead of top-line expectations.
Among the food/beverage companies that have already reported their numbers, PepsiCo, Inc. (PEP - Free Report) once again reported stellar Q2 results earlier this month and also upped its full year earnings growth target. Last month, General Mills, Inc. (GIS - Free Report) reported better-than-expected fourth-quarter fiscal 2016 results on both the top and the bottom line.
Generally, the top line of most food companies are challenged by soft global retail and consumer demand amid evolving consumer tastes. Moreover, economic slowdown in many emerging countries is hurting international sales and profits. However, the domestic business has done comparatively well supported by an improving economic and consumer spending environment.
Additionally, lower commodity costs than last year, price increases, and cost savings and productivity gains from their restructuring programs have buoyed the bottom line.
These companies have also become more innovative in their product lines – removing artificial flavors and colors from their products and using simpler ingredients in their food – to meet changing consumer preferences. Notably, some of these companies have been acquiring complementary brands and companies to strengthen their portfolio.
We believe that these efforts should cushion these companies from growing international headwinds as well as enable them to cater to widely varying consumer tastes in the second half of 2016 and beyond.
Five food companies, Mondelez International, Inc. (MDLZ - Free Report) , The Hershey Company (HSY - Free Report) , Pilgrim's Pride Corporation (PPC - Free Report) , SUPERVALU Inc. and Inventure Foods, Inc are set to report their quarterly results this week. Will these food companies be able to emulate Pepsi’s performance? Let’s have a look at what might be in store for them.
Mondelez International
This Deerfield, IL-based global snacks company will report its Q2 results on Jul 27 before the opening bell. Last quarter, the company posted a positive earnings surprise of 20.0%.
The global snacks company outpaced earnings estimates in three of the last four quarters with an average surprise of 10.52%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at 40 cents.
In the first quarter, improved organic growth in developed markets like Europe and North America counterbalanced slower growth in emerging markets. Sales trends in emerging markets were affected by softening category growth and elasticity impact from higher pricing. We expect the trend to continue in the second quarter as well (read more: What's in Store for Mondelez in Q2 Earnings?).
The Hershey Company
This Hershey, PA-based chocolate company is set to report Q2 results on Jul 28, before the market opens. Last quarter, the company posted a positive earnings surprise of 4.76%.
The company surpassed earnings estimates in all the last four quarters with an average surprise of 4.37%.
The company has an Earnings ESP of -1.28% and a Zacks Rank #4. The Zacks Consensus Estimate for the quarter is pegged at 78 cents.
Hershey’s sales trends have been feeble since 2014 due to weak category trends, intense competition from the broader snacking category and soft international growth. With a poor sales history, we do not expect any significant improvement in sales trends in the second quarter. However, despite lackluster sales, Hershey has been able to maintain relatively better margins on the back of supply chain savings and productivity gains (read more: Will Hershey Earnings Disappoint Investors in Q2).
Pilgrim's Pride Corporation
Pilgrim’s Pride is engaged in production, distribution and sale of frozen, fresh and value-added chicken products to various foodservice operators, distributors and retailers. It is due to report on Jul 28 before the opening bell.
Last quarter, the company delivered a negative earnings surprise of 2.13%. In the trailing four quarters, the company reported an average negative earnings surprise of 14.65%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for the quarter is pegged at 65 cents per share.
Pilgrim’s Pride reported weak results in the last reported quarter. The downside can be attributed to negatives like outbreak of the Avian Flu, high volatility in consumers’ brand loyalty, lower-than-expected wage increase, high income inequality in the U.S., as well as dreary economic performance in emerging markets. Factors like these are likely to continue to hurt the company’s results in the to-be-reported quarter (read more: Will Pilgrim's Pride Earnings Disappoint Again in Q2?).
SUPERVALU Inc.
The grocery retailer is expected to report first-quarter fiscal 2017 results on Jul 27 before market opens. The company delivered a positive earnings surprise of 35.29% in the fourth-quarter fiscal 2016. For Q1, the company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the quarter is pegged at 21 cents.
SUPERVALU delivered positive earnings surprises in three of the past four quarters, with an average beat of 10.79%.
SUPERVALU has been reporting lower earnings for the last few quarters due to weak profits. The company's sales have also been declining chiefly due to lower comps. The trend is anticipated to continue in the to-be-reported quarter.
Inventure Foods
The maker of natural and indulgent specialty snack food brands is due to report on Jul 27, before the opening bell.
Last quarter, the company delivered a positive earnings surprise of 16.67%. However, in the trailing four quarters, the company delivered an average negative earnings surprise of 370.83%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at breakeven.
Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!
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Food Stocks Releasing Earnings this Week: MDLZ, HSY & More
The Q2 results announced so far portray a picture of improvement from weak results of the past quarters. According to an earnings preview report, of the 126 S&P 500 members that have reported Q2 results so far, 70.6% have beaten EPS estimates and 55.6% have come ahead of top-line expectations.
Among the food/beverage companies that have already reported their numbers, PepsiCo, Inc. (PEP - Free Report) once again reported stellar Q2 results earlier this month and also upped its full year earnings growth target. Last month, General Mills, Inc. (GIS - Free Report) reported better-than-expected fourth-quarter fiscal 2016 results on both the top and the bottom line.
Generally, the top line of most food companies are challenged by soft global retail and consumer demand amid evolving consumer tastes. Moreover, economic slowdown in many emerging countries is hurting international sales and profits. However, the domestic business has done comparatively well supported by an improving economic and consumer spending environment.
Additionally, lower commodity costs than last year, price increases, and cost savings and productivity gains from their restructuring programs have buoyed the bottom line.
These companies have also become more innovative in their product lines – removing artificial flavors and colors from their products and using simpler ingredients in their food – to meet changing consumer preferences. Notably, some of these companies have been acquiring complementary brands and companies to strengthen their portfolio.
We believe that these efforts should cushion these companies from growing international headwinds as well as enable them to cater to widely varying consumer tastes in the second half of 2016 and beyond.
Five food companies, Mondelez International, Inc. (MDLZ - Free Report) , The Hershey Company (HSY - Free Report) , Pilgrim's Pride Corporation (PPC - Free Report) , SUPERVALU Inc. and Inventure Foods, Inc are set to report their quarterly results this week. Will these food companies be able to emulate Pepsi’s performance? Let’s have a look at what might be in store for them.
Mondelez International
This Deerfield, IL-based global snacks company will report its Q2 results on Jul 27 before the opening bell. Last quarter, the company posted a positive earnings surprise of 20.0%.
The global snacks company outpaced earnings estimates in three of the last four quarters with an average surprise of 10.52%.
MONDELEZ INTL Price and EPS Surprise
MONDELEZ INTL Price and EPS Surprise | MONDELEZ INTL Quote
The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at 40 cents.
In the first quarter, improved organic growth in developed markets like Europe and North America counterbalanced slower growth in emerging markets. Sales trends in emerging markets were affected by softening category growth and elasticity impact from higher pricing. We expect the trend to continue in the second quarter as well (read more: What's in Store for Mondelez in Q2 Earnings?).
The Hershey Company
This Hershey, PA-based chocolate company is set to report Q2 results on Jul 28, before the market opens. Last quarter, the company posted a positive earnings surprise of 4.76%.
The company surpassed earnings estimates in all the last four quarters with an average surprise of 4.37%.
HERSHEY CO/THE Price and EPS Surprise
HERSHEY CO/THE Price and EPS Surprise | HERSHEY CO/THE Quote
The company has an Earnings ESP of -1.28% and a Zacks Rank #4. The Zacks Consensus Estimate for the quarter is pegged at 78 cents.
Hershey’s sales trends have been feeble since 2014 due to weak category trends, intense competition from the broader snacking category and soft international growth. With a poor sales history, we do not expect any significant improvement in sales trends in the second quarter. However, despite lackluster sales, Hershey has been able to maintain relatively better margins on the back of supply chain savings and productivity gains (read more: Will Hershey Earnings Disappoint Investors in Q2).
Pilgrim's Pride Corporation
Pilgrim’s Pride is engaged in production, distribution and sale of frozen, fresh and value-added chicken products to various foodservice operators, distributors and retailers. It is due to report on Jul 28 before the opening bell.
Last quarter, the company delivered a negative earnings surprise of 2.13%. In the trailing four quarters, the company reported an average negative earnings surprise of 14.65%.
PILGRIMS PRIDE Price and EPS Surprise
PILGRIMS PRIDE Price and EPS Surprise | PILGRIMS PRIDE Quote
The company has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for the quarter is pegged at 65 cents per share.
Pilgrim’s Pride reported weak results in the last reported quarter. The downside can be attributed to negatives like outbreak of the Avian Flu, high volatility in consumers’ brand loyalty, lower-than-expected wage increase, high income inequality in the U.S., as well as dreary economic performance in emerging markets. Factors like these are likely to continue to hurt the company’s results in the to-be-reported quarter (read more: Will Pilgrim's Pride Earnings Disappoint Again in Q2?).
SUPERVALU Inc.
The grocery retailer is expected to report first-quarter fiscal 2017 results on Jul 27 before market opens. The company delivered a positive earnings surprise of 35.29% in the fourth-quarter fiscal 2016. For Q1, the company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the quarter is pegged at 21 cents.
SUPERVALU delivered positive earnings surprises in three of the past four quarters, with an average beat of 10.79%.
SUPERVALU INC Price and EPS Surprise
SUPERVALU INC Price and EPS Surprise | SUPERVALU INC Quote
SUPERVALU has been reporting lower earnings for the last few quarters due to weak profits. The company's sales have also been declining chiefly due to lower comps. The trend is anticipated to continue in the to-be-reported quarter.
Inventure Foods
The maker of natural and indulgent specialty snack food brands is due to report on Jul 27, before the opening bell.
Last quarter, the company delivered a positive earnings surprise of 16.67%. However, in the trailing four quarters, the company delivered an average negative earnings surprise of 370.83%.
INVENTURE FOODS Price and EPS Surprise
INVENTURE FOODS Price and EPS Surprise | INVENTURE FOODS Quote
The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at breakeven.
Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>