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Things to Keep in Mind Before Kraft Heinz's (KHC) Q4 Earnings
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The Kraft Heinz Company (KHC - Free Report) is likely to register top-and bottom-line decline when it reports fourth-quarter 2021 numbers on Feb 16. The Zacks Consensus Estimate for quarterly revenues is pegged at $6,617 million, which suggests a decline of 4.7% from the figure reported in the prior-year quarter. The consensus mark for 2021 revenues is pegged at $25,950 million, indicating a drop of 0.9% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has moved down by a penny in the last 7 days to 62 cents per share, suggesting a decline of 22.5% from the figure reported in the prior-year period. The company’s consensus mark for the 2021 bottom line is pegged at $2.78 per share, indicating a decline of 3.5% from the year-ago period’s reported figure. The manufacturer and marketer of food and beverage products has a trailing four-quarter earnings surprise of 11.8%, on average. In the last reported quarter, the company delivered an earnings surprise of 12.1%.
The Kraft Heinz Company Price, Consensus and EPS Surprise
Kraft Heinz is grappling with supply chain disruptions, labor issues and raw material inflation. Management, in its third-quarter earnings call, highlighted that it expects gross inflation for 2021 to remain at the high end of the mid-single-digit range across the full cost basket, with inflation accelerating in the back half of the year to the high-single-digit band. This also raises concerns for the fourth quarter.
Kraft Heinz highlighted that it anticipates 2021 organic net sales to be flat compared with a solid 2020 period. The company expects a 2021 adjusted EBITDA of more than $6.2 billion. The outlook takes into account better-than-anticipated organic net sales along with the ongoing efforts to manage inflationary pressures. These aspects bode well for the quarter to be reported.
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 has an Earnings ESP of -2.91%.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Grocery Outlet Holding (GO - Free Report) has an Earnings ESP of +8.45% and a Zacks Rank #3. Grocery Outlet is anticipated to register a top-and bottom-line decline when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for GO’s quarterly revenues is pegged at $774.2 million, indicating a decline of nearly 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Grocery Outlet’s bottom line has remained unchanged in the past 30 days at 20 cents per share. The consensus estimate for earnings suggests a decline of 16.7% from the year-ago quarter’s reported figure. Grocery Outlet delivered an earnings beat of 4.5%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Service Corporation International (SCI - Free Report) currently has an Earnings ESP of +17.39% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter 2021 numbers. Although the Zacks Consensus Estimate for quarterly earnings has moved up 11.1% to $1.00 per share in the past 30 days, it projects an 11.5% fall from the year-ago quarter’s reported figure.
Service Corporation’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, which suggests a rise of 4.3% from the figure reported in the prior-year quarter.
Lamb Weston (LW - Free Report) currently has an Earnings ESP of +3.91% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports third-quarter fiscal 2022 earnings. The consensus mark for LW’s quarterly revenues is pegged at $971.7 million, suggesting 8.5% growth from the figure reported in the prior-year quarter.
The consensus mark for quarterly earnings has moved down by a penny in the past 30 days to 45 cents per share. However, the consensus estimate for LW is expected to remain unchanged year over year.
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Things to Keep in Mind Before Kraft Heinz's (KHC) Q4 Earnings
The Kraft Heinz Company (KHC - Free Report) is likely to register top-and bottom-line decline when it reports fourth-quarter 2021 numbers on Feb 16. The Zacks Consensus Estimate for quarterly revenues is pegged at $6,617 million, which suggests a decline of 4.7% from the figure reported in the prior-year quarter. The consensus mark for 2021 revenues is pegged at $25,950 million, indicating a drop of 0.9% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has moved down by a penny in the last 7 days to 62 cents per share, suggesting a decline of 22.5% from the figure reported in the prior-year period. The company’s consensus mark for the 2021 bottom line is pegged at $2.78 per share, indicating a decline of 3.5% from the year-ago period’s reported figure. The manufacturer and marketer of food and beverage products has a trailing four-quarter earnings surprise of 11.8%, on average. In the last reported quarter, the company delivered an earnings surprise of 12.1%.
The Kraft Heinz Company Price, Consensus and EPS Surprise
The Kraft Heinz Company price-consensus-eps-surprise-chart | The Kraft Heinz Company Quote
Things To Consider
Kraft Heinz is grappling with supply chain disruptions, labor issues and raw material inflation. Management, in its third-quarter earnings call, highlighted that it expects gross inflation for 2021 to remain at the high end of the mid-single-digit range across the full cost basket, with inflation accelerating in the back half of the year to the high-single-digit band. This also raises concerns for the fourth quarter.
Kraft Heinz highlighted that it anticipates 2021 organic net sales to be flat compared with a solid 2020 period. The company expects a 2021 adjusted EBITDA of more than $6.2 billion. The outlook takes into account better-than-anticipated organic net sales along with the ongoing efforts to manage inflationary pressures. These aspects bode well for the quarter to be reported.
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 has an Earnings ESP of -2.91%.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Grocery Outlet Holding (GO - Free Report) has an Earnings ESP of +8.45% and a Zacks Rank #3. Grocery Outlet is anticipated to register a top-and bottom-line decline when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for GO’s quarterly revenues is pegged at $774.2 million, indicating a decline of nearly 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Grocery Outlet’s bottom line has remained unchanged in the past 30 days at 20 cents per share. The consensus estimate for earnings suggests a decline of 16.7% from the year-ago quarter’s reported figure. Grocery Outlet delivered an earnings beat of 4.5%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Service Corporation International (SCI - Free Report) currently has an Earnings ESP of +17.39% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter 2021 numbers. Although the Zacks Consensus Estimate for quarterly earnings has moved up 11.1% to $1.00 per share in the past 30 days, it projects an 11.5% fall from the year-ago quarter’s reported figure.
Service Corporation’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, which suggests a rise of 4.3% from the figure reported in the prior-year quarter.
Lamb Weston (LW - Free Report) currently has an Earnings ESP of +3.91% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports third-quarter fiscal 2022 earnings. The consensus mark for LW’s quarterly revenues is pegged at $971.7 million, suggesting 8.5% growth from the figure reported in the prior-year quarter.
The consensus mark for quarterly earnings has moved down by a penny in the past 30 days to 45 cents per share. However, the consensus estimate for LW is expected to remain unchanged year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.