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Here's How Kraft Heinz (KHC) Looks Ahead of Q4 Earnings
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The Kraft Heinz Company (KHC - Free Report) is likely to report an improvement in the top and the bottom line, when it reports fourth-quarter 2020 numbers on Feb 11, before market open. The Zacks Consensus Estimate for revenues is pegged at $6.88 billion, which indicates an increase of 5.3% from the prior-year quarter’s reported figure. For 2020, the consensus mark is pegged at $26.13 billion that suggests growth of 4.6% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is unchanged at 74 cents per share, which suggests 2.8% increase from the year-ago quarter’s reported figure. For 2020, the Zacks Consensus Estimate for earnings is pegged at $2.81 per share, which suggests a decline of 1.4% from the prior-year’s reported figure. Notably, this leading provider of consumer packaged food and beverages has a trailing four-quarter earnings surprise of 12.4%, on average. In the last reported quarter, the company delivered an earnings surprise of 11.1%.
Kraft Heinz is witnessing higher demand from retail customers owing to greater at-home consumption trends amid the coronavirus outbreak. For fourth-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 to-be-reported quarter. For 2020, Kraft Heinz projects organic net sales growth of mid-single-digit and constant currency adjusted EBITDA increase of high single digit.
Apart from these, Kraft Heinz’s strategic endeavors like enhancement of supply chain and cost savings are noteworthy. Also, the company is undertaking efforts to boost the e-commerce channel.
However, Kraft Heinz is struggling with higher selling, general and administrative expenses. Moreover, the company is incurring adverse key commodity costs and higher COVID-19-related costs globally. Also, negative impacts from unfavorable currency fluctuation cannot be ignored.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Kraft Heinz this time around. 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 carries a Zacks Rank #3 and an Earnings ESP of -1.02%.
Stocks With Favorable Combinations
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
Newell Brands Inc. (NWL - Free Report) currently has an Earnings ESP of +1.30% and carries a Zacks Rank #3.
Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +0.16% and carries a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Here's How Kraft Heinz (KHC) Looks Ahead of Q4 Earnings
The Kraft Heinz Company (KHC - Free Report) is likely to report an improvement in the top and the bottom line, when it reports fourth-quarter 2020 numbers on Feb 11, before market open. The Zacks Consensus Estimate for revenues is pegged at $6.88 billion, which indicates an increase of 5.3% from the prior-year quarter’s reported figure. For 2020, the consensus mark is pegged at $26.13 billion that suggests growth of 4.6% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is unchanged at 74 cents per share, which suggests 2.8% increase from the year-ago quarter’s reported figure. For 2020, the Zacks Consensus Estimate for earnings is pegged at $2.81 per share, which suggests a decline of 1.4% from the prior-year’s reported figure. Notably, this leading provider of consumer packaged food and beverages has a trailing four-quarter earnings surprise of 12.4%, on average. In the last reported quarter, the company delivered an earnings surprise of 11.1%.
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 higher demand from retail customers owing to greater at-home consumption trends amid the coronavirus outbreak. For fourth-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 to-be-reported quarter. For 2020, Kraft Heinz projects organic net sales growth of mid-single-digit and constant currency adjusted EBITDA increase of high single digit.
Apart from these, Kraft Heinz’s strategic endeavors like enhancement of supply chain and cost savings are noteworthy. Also, the company is undertaking efforts to boost the e-commerce channel.
However, Kraft Heinz is struggling with higher selling, general and administrative expenses. Moreover, the company is incurring adverse key commodity costs and higher COVID-19-related costs globally. Also, negative impacts from unfavorable currency fluctuation cannot be ignored.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Kraft Heinz this time around. 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 carries a Zacks Rank #3 and an Earnings ESP of -1.02%.
Stocks With Favorable Combinations
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
e.l.f. Beauty Inc. (ELF - Free Report) currently has an Earnings ESP of +21.15% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Newell Brands Inc. (NWL - Free Report) currently has an Earnings ESP of +1.30% and carries a Zacks Rank #3.
Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +0.16% and carries a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>