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Kraft Heinz (KHC) Gears Up to Post Q2 Earnings: What in Store?

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The Kraft Heinz Company (KHC - Free Report) is likely to register a decline in the top and the bottom line when it reports second-quarter 2021 numbers on Aug 4.

Although the Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the past seven days to 73 cents per share, it suggests a decline of 8.8% from the year-ago quarter’s reported figure. The manufacturer and marketer of food and beverage products has a trailing four-quarter earnings surprise of 16.1%, on average. In the last reported quarter, the company delivered an earnings surprise of 20%.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $6,616 million, which suggests a drop of 0.5% from the figure reported in the prior-year quarter.

The Kraft Heinz Company Price and EPS Surprise


The Kraft Heinz Company Price and EPS Surprise

The Kraft Heinz Company price-eps-surprise | The Kraft Heinz Company Quote


Things to Note

Kraft Heinz has been grappling with cost inflation for a while. Management, during its first-quarter 2021 earnings call, stated that it expects cost inflation to increase in the second quarter.

Kraft Heinz envisions a mid-single-digit percentage growth in both organic net sales and constant currency (cc) adjusted EBITDA in the to-be-reported quarter from 2019 levels. The outlook suggests a low-single-digit percentage decline in organic net sales and a mid-single-digit percentage fall in cc adjusted EBITDA compared with the 2020 period’s levels. Management highlighted that comparison to the 2019 period is more reasonable than the 2020 period that witnessed unprecedented pandemic-related demand.

Kraft Heinz is working toward its long-term goals, which were unveiled in September 2020. The company’s operating model, which incorporates five key elements — People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth — bodes well.

What the Zacks Model Unveils

Our proven model does not 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 currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -2.17%.

Some 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 in the to-be-reported quarter.

Medifast (MED - Free Report) currently has an Earnings ESP of +7.27% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +11.17% and a Zacks Rank of 3.

B&G Foods, Inc. (BGS - Free Report) currently has an Earnings ESP of +6.82% and a Zacks Rank of 3.

In-Depth Zacks Research for the Tickers Above

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Tyson Foods, Inc. (TSN) - free report >>

B&G Foods, Inc. (BGS) - free report >>

MEDIFAST INC (MED) - free report >>

The Kraft Heinz Company (KHC) - free report >>