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What's in the Offing for Kraft Heinz (KHC) in Q1 Earnings?
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The Kraft Heinz Company (KHC - Free Report) is likely to witness a year-over-year decrease in the top and bottom lines when it reports first-quarter 2022 earnings on Apr 27. The Zacks Consensus Estimate for revenues is pegged at $5,787 million, suggesting a decline of 9.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at 52 cents per share. This indicates a decline of 27.8% from the figure reported in the prior-year period. Kraft Heinz has a trailing four-quarter earnings surprise of 16.6%, on average. This food and beverage products company delivered an earnings surprise of 27.4% in the last reported quarter.
The Kraft Heinz Company Price, Consensus and EPS Surprise
Kraft Heinz has been battling escalated commodity costs, including core commodity and packaging costs along with procurement, logistics and manufacturing cost inflation. On its last earnings call, management highlighted that it continues to witness the rising input costs. Incidentally, management expects percentage margins to remain under pressure for the first half of 2022 as pricing continues to meet inflation. This raises concerns for the quarter under review.
However, pricing initiatives and strength in the company’s operating model bode well. In September 2020, KHC laid out a new operating model that incorporates five key elements, which include People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth. Also, the company has been on track with business transformation. As part of its next transformation phase, management unveiled AGILE@SCALE in February 2022. The strategy aims to help Kraft Heinz enhance its agile expertise and capabilities via partnerships with technology giants and cutting-edge innovators.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Kraft Heinz this time. 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, which is not the case here.
Kraft Heinz currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
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.
Hershey (HSY - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #2. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Hershey’s revenues is pegged at $2,482 million, indicating growth of 8.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly earnings is pegged at $2.10 per share, suggesting a rise of 9.4% from the year-ago quarter’s reported figure. HSY delivered an earnings beat of 4.3%, on average, in the trailing four quarters.
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +5.60% and a Zacks Rank #2. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Inter Parfums’ revenues is pegged at $219.4 million, indicating a rise of 10.5% from the year-ago quarter.
The Zacks Consensus Estimate for Inter Parfums’ bottom line stands at 83 cents per share, which suggests a decline of 4.6% from the year-ago period’s reported figure. IPAR has a trailing four-quarter earnings surprise of 46.7%, on average.
Church & Dwight Co., Inc. (CHD - Free Report) has an Earnings ESP of +2.69% and a Zacks Rank #3. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Church & Dwight’s revenues is pegged at $1,287 billion, indicating an increase of 3.6% from the year-ago quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings per share of 76 cents suggests a decline of 8.4% from the year-ago quarter’s reported figure. CHD has a trailing four-quarter earnings surprise of 8.8%, on average.
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What's in the Offing for Kraft Heinz (KHC) in Q1 Earnings?
The Kraft Heinz Company (KHC - Free Report) is likely to witness a year-over-year decrease in the top and bottom lines when it reports first-quarter 2022 earnings on Apr 27. The Zacks Consensus Estimate for revenues is pegged at $5,787 million, suggesting a decline of 9.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at 52 cents per share. This indicates a decline of 27.8% from the figure reported in the prior-year period. Kraft Heinz has a trailing four-quarter earnings surprise of 16.6%, on average. This food and beverage products company delivered an earnings surprise of 27.4% in the last reported quarter.
The Kraft Heinz Company Price, Consensus and EPS Surprise
The Kraft Heinz Company price-consensus-eps-surprise-chart | The Kraft Heinz Company Quote
Key Factors to Consider
Kraft Heinz has been battling escalated commodity costs, including core commodity and packaging costs along with procurement, logistics and manufacturing cost inflation. On its last earnings call, management highlighted that it continues to witness the rising input costs. Incidentally, management expects percentage margins to remain under pressure for the first half of 2022 as pricing continues to meet inflation. This raises concerns for the quarter under review.
However, pricing initiatives and strength in the company’s operating model bode well. In September 2020, KHC laid out a new operating model that incorporates five key elements, which include People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth. Also, the company has been on track with business transformation. As part of its next transformation phase, management unveiled AGILE@SCALE in February 2022. The strategy aims to help Kraft Heinz enhance its agile expertise and capabilities via partnerships with technology giants and cutting-edge innovators.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Kraft Heinz this time. 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, which is not the case here.
Kraft Heinz currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
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.
Hershey (HSY - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #2. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Hershey’s revenues is pegged at $2,482 million, indicating growth of 8.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly earnings is pegged at $2.10 per share, suggesting a rise of 9.4% from the year-ago quarter’s reported figure. HSY delivered an earnings beat of 4.3%, on average, in the trailing four quarters.
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +5.60% and a Zacks Rank #2. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Inter Parfums’ revenues is pegged at $219.4 million, indicating a rise of 10.5% from the year-ago quarter.
The Zacks Consensus Estimate for Inter Parfums’ bottom line stands at 83 cents per share, which suggests a decline of 4.6% from the year-ago period’s reported figure. IPAR has a trailing four-quarter earnings surprise of 46.7%, on average.
Church & Dwight Co., Inc. (CHD - Free Report) has an Earnings ESP of +2.69% and a Zacks Rank #3. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Church & Dwight’s revenues is pegged at $1,287 billion, indicating an increase of 3.6% from the year-ago quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings per share of 76 cents suggests a decline of 8.4% from the year-ago quarter’s reported figure. CHD has a trailing four-quarter earnings surprise of 8.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.