We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Kraft Heinz (KHC) Looks Ahead of Q3 Earnings
Read MoreHide Full Article
The Kraft Heinz Company (KHC - Free Report) is likely to register an improvement in the top line when it reports third-quarter 2020 numbers on Oct 29, before market open. The Zacks Consensus Estimate for revenues is pegged at $6.36 billion, which indicates an increase of 4.7% from the prior-year quarter’s reported figure.
However, the company’s bottom line is expected to decline year over year. The Zacks Consensus Estimate for third-quarter 2020 earnings is pegged at 63 cents per share, which suggests 8.7% drop from the year-ago quarter’s reported figure. Nevertheless, the projection has moved up by a cent in the past seven days.
Notably, this leading provider of consumer packaged food and beverages has a trailing four-quarter earnings surprise of 17.1%, on average.In the last reported quarter, the company delivered an earnings surprise of 25%.
Kraft Heinz is witnessing a spike in demand from retail customers owing to greater at-home consumption trends amid the coronavirus outbreak. For third-quarter 2020, management expects organic net sales growth in mid-single-digit band compared with the year-ago quarter’s levels. Further, the company anticipates high-single-digit adjusted EBITDA growth on a constant-currency basis in the third quarter.
Notably, the company’s strategic endeavors such as efficient pricing strategy, enhancement of supply chain and product development are noteworthy. Apart from this, Kraft Heinz is undertaking efforts to boost the e-commerce channel.
However, Kraft Heinz is struggling with higher expenses. The company is incurring additional costs to keep its business operating amid the coronavirus crisis. Also, the impact of sluggish demand in foodservice channels worldwide amid COVID-19 as well as adverse currency fluctuation cannot be ignored. Apart from these, management in its last earnings call stated that during the third quarter it expects to see adverse impacts stemming from the divestiture of McCafe business.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kraft Heinz this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kraft Heinz has a Zacks Rank #3 and an Earnings ESP of +0.80%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +1.63% and a Zacks Rank #3.
Medifast (MED - Free Report) currently has an Earnings ESP of +1.54% and a Zacks Rank of 3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Here's How Kraft Heinz (KHC) Looks Ahead of Q3 Earnings
The Kraft Heinz Company (KHC - Free Report) is likely to register an improvement in the top line when it reports third-quarter 2020 numbers on Oct 29, before market open. The Zacks Consensus Estimate for revenues is pegged at $6.36 billion, which indicates an increase of 4.7% from the prior-year quarter’s reported figure.
However, the company’s bottom line is expected to decline year over year. The Zacks Consensus Estimate for third-quarter 2020 earnings is pegged at 63 cents per share, which suggests 8.7% drop from the year-ago quarter’s reported figure. Nevertheless, the projection has moved up by a cent in the past seven days.
Notably, this leading provider of consumer packaged food and beverages has a trailing four-quarter earnings surprise of 17.1%, on average.In the last reported quarter, the company delivered an earnings surprise of 25%.
The Kraft Heinz Company Price and EPS Surprise
The Kraft Heinz Company price-eps-surprise | The Kraft Heinz Company Quote
Factors to Note
Kraft Heinz is witnessing a spike in demand from retail customers owing to greater at-home consumption trends amid the coronavirus outbreak. For third-quarter 2020, management expects organic net sales growth in mid-single-digit band compared with the year-ago quarter’s levels. Further, the company anticipates high-single-digit adjusted EBITDA growth on a constant-currency basis in the third quarter.
Notably, the company’s strategic endeavors such as efficient pricing strategy, enhancement of supply chain and product development are noteworthy. Apart from this, Kraft Heinz is undertaking efforts to boost the e-commerce channel.
However, Kraft Heinz is struggling with higher expenses. The company is incurring additional costs to keep its business operating amid the coronavirus crisis. Also, the impact of sluggish demand in foodservice channels worldwide amid COVID-19 as well as adverse currency fluctuation cannot be ignored. Apart from these, management in its last earnings call stated that during the third quarter it expects to see adverse impacts stemming from the divestiture of McCafe business.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kraft Heinz this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kraft Heinz has a Zacks Rank #3 and an Earnings ESP of +0.80%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Church & Dwight (CHD - Free Report) has an Earnings ESP of +1.80% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +1.63% and a Zacks Rank #3.
Medifast (MED - Free Report) currently has an Earnings ESP of +1.54% and a Zacks Rank of 3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>