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Food Stocks to Watch for Earnings on Nov 3: KHC, THS & More
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The Q3 earnings season is in full swing, with results from 332 S&P 500 members already out. The results announced so far display major improvement compared with the preceding quarters. The quarter is on track to report notable growth after five quarters of back-to-back decline.
According to the latest Earnings Outlook, of the 74.1% S&P 500 members that have reported Q3 results so far, 72.9% have posted positive earnings surprises and 55.4% have come ahead of top-line expectations.
In the consumer staples space, we have seen Q3 results from 80.6% of the companies, as of Nov 1. Of these, 85% recorded an earnings beat, while 40% trumped revenue estimates. Reported results reveal 4.9% growth in third-quarter earnings despite slight growth of 0.5% in revenues.
The consumer staples sector has managed to perform fairly well in the past few months, buoyed by rising consumer confidence and an improving economy. Though, U.S. consumer confidence - a key determinant of the economy's health - matched its lowest level in two years in October on rising concerns about the economy ahead of the presidential elections, it rose for the second consecutive month in September.
That said, efficient pricing, solid cost reduction initiatives, lucrative acquisitions and efforts to enhance product portfolio cushion these companies from macroeconomic hurdles, consequently driving their bottom lines.
The food sector is part of the consumer staples sector and has so far reported decent earnings this season. Food stocks are particularly doing well in the third quarter. Leading firms from the industry like The Hershey’s Company (HSY - Free Report) , Pinnacle Foods, Inc. , B&G Foods, Inc. (BGS - Free Report) , Mondelez International, Inc. (MDLZ - Free Report) , Kellogg Co. (K - Free Report) and many others have delivered better-than-expected Q3 earnings results despite currency headwinds and sluggishness in emerging markets. Domestic business of these food companies has particularly fared well aided by an improving economic and consumer spending environment.
Let’s take a look at what’s in store for three other food stocks which are scheduled to release their quarterly numbers on Nov 3.
The Kraft Heinz Company (KHC - Free Report) is slated to report its Q3 numbers after the closing bell.
Last quarter, the company delivered a positive earnings surprise of 19.72%. The packaged food manufacturer delivered positive earnings surprises in three of the past four quarters with an average surprise of 5.22%.
As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.
Thus, we expect the company to beat estimates as it has an earnings ESP of +2.63% and a Zacks Rank #1. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 76 cents, reflecting a significant 73.4% year-over-year increase. Meanwhile, our estimate for revenues is $6.31 billion, implying 3% growth (read more: Kraft Heinz: A Beat in the Cards this Earnings Season?).
Oak Brook, Ill-based Treehouse Foods, Inc. (THS - Free Report) is a manufacturer of packaged foods and beverages with more than 50 manufacturing facilities across the U.S., Canada and Italy servicing retail grocery, food away from home, and industrial and export customers.
The company is slated to report its Q3 numbers before the opening bell. Last quarter, the company delivered in-line earnings. It has delivered positive earnings surprises in the rest of the past four quarters with an average positive surprise of 7.12%.
The company has an earnings ESP of 0.00% and a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
TreeHouse expects GAAP earnings per share to be in the range of 75 cents–80 cents per share. Fourth-quarter adjusted earnings are expected to be in the range of $1.23–$1.28 per share.
Meanwhile, for the third quarter, the Zacks Consensus Estimate for earnings is pegged at 77 cents, reflecting a 10% year-over-year decrease. Meanwhile, our estimate for revenues is $1.64 billion, implying a significant 105.6% growth.
The Hain Celestial Group, Inc. (HAIN - Free Report) makes, markets, distributes, and sells organic and natural products in the U.S., the U.K., Canada, and Europe.
The Zacks Consensus Estimate for fiscal first-quarter 2017 earnings is pegged at 39 cents (up 6% year over year) while the consensus for revenues is at $725.2 million, reflecting a 5.5% year-over-year increase.
The company’s earnings ESP of 0.00% and Zacks Rank #4 again dims possibilities of a beat in the quarter.
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Food Stocks to Watch for Earnings on Nov 3: KHC, THS & More
The Q3 earnings season is in full swing, with results from 332 S&P 500 members already out. The results announced so far display major improvement compared with the preceding quarters. The quarter is on track to report notable growth after five quarters of back-to-back decline.
According to the latest Earnings Outlook, of the 74.1% S&P 500 members that have reported Q3 results so far, 72.9% have posted positive earnings surprises and 55.4% have come ahead of top-line expectations.
In the consumer staples space, we have seen Q3 results from 80.6% of the companies, as of Nov 1. Of these, 85% recorded an earnings beat, while 40% trumped revenue estimates. Reported results reveal 4.9% growth in third-quarter earnings despite slight growth of 0.5% in revenues.
The consumer staples sector has managed to perform fairly well in the past few months, buoyed by rising consumer confidence and an improving economy. Though, U.S. consumer confidence - a key determinant of the economy's health - matched its lowest level in two years in October on rising concerns about the economy ahead of the presidential elections, it rose for the second consecutive month in September.
That said, efficient pricing, solid cost reduction initiatives, lucrative acquisitions and efforts to enhance product portfolio cushion these companies from macroeconomic hurdles, consequently driving their bottom lines.
The food sector is part of the consumer staples sector and has so far reported decent earnings this season. Food stocks are particularly doing well in the third quarter. Leading firms from the industry like The Hershey’s Company (HSY - Free Report) , Pinnacle Foods, Inc. , B&G Foods, Inc. (BGS - Free Report) , Mondelez International, Inc. (MDLZ - Free Report) , Kellogg Co. (K - Free Report) and many others have delivered better-than-expected Q3 earnings results despite currency headwinds and sluggishness in emerging markets. Domestic business of these food companies has particularly fared well aided by an improving economic and consumer spending environment.
Let’s take a look at what’s in store for three other food stocks which are scheduled to release their quarterly numbers on Nov 3.
The Kraft Heinz Company (KHC - Free Report) is slated to report its Q3 numbers after the closing bell.
Last quarter, the company delivered a positive earnings surprise of 19.72%. The packaged food manufacturer delivered positive earnings surprises in three of the past four quarters with an average surprise of 5.22%.
As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.
Thus, we expect the company to beat estimates as it has an earnings ESP of +2.63% and a Zacks Rank #1. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 76 cents, reflecting a significant 73.4% year-over-year increase. Meanwhile, our estimate for revenues is $6.31 billion, implying 3% growth (read more: Kraft Heinz: A Beat in the Cards this Earnings Season?).
KRAFT HEINZ CO Price and EPS Surprise
KRAFT HEINZ CO Price and EPS Surprise | KRAFT HEINZ CO Quote
Oak Brook, Ill-based Treehouse Foods, Inc. (THS - Free Report) is a manufacturer of packaged foods and beverages with more than 50 manufacturing facilities across the U.S., Canada and Italy servicing retail grocery, food away from home, and industrial and export customers.
The company is slated to report its Q3 numbers before the opening bell. Last quarter, the company delivered in-line earnings. It has delivered positive earnings surprises in the rest of the past four quarters with an average positive surprise of 7.12%.
The company has an earnings ESP of 0.00% and a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
TreeHouse expects GAAP earnings per share to be in the range of 75 cents–80 cents per share. Fourth-quarter adjusted earnings are expected to be in the range of $1.23–$1.28 per share.
Meanwhile, for the third quarter, the Zacks Consensus Estimate for earnings is pegged at 77 cents, reflecting a 10% year-over-year decrease. Meanwhile, our estimate for revenues is $1.64 billion, implying a significant 105.6% growth.
TREEHOUSE FOODS Price and EPS Surprise
TREEHOUSE FOODS Price and EPS Surprise | TREEHOUSE FOODS Quote
The Hain Celestial Group, Inc. (HAIN - Free Report) makes, markets, distributes, and sells organic and natural products in the U.S., the U.K., Canada, and Europe.
The Zacks Consensus Estimate for fiscal first-quarter 2017 earnings is pegged at 39 cents (up 6% year over year) while the consensus for revenues is at $725.2 million, reflecting a 5.5% year-over-year increase.
The company’s earnings ESP of 0.00% and Zacks Rank #4 again dims possibilities of a beat in the quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
HAIN CELESTIAL Price and EPS Surprise
HAIN CELESTIAL Price and EPS Surprise | HAIN CELESTIAL Quote
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