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Kraft Heinz (KHC) Q3 Earnings Upcoming: Key Factors to Note
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The Kraft Heinz Company (KHC - Free Report) is likely to register top and bottom-line declines from the respective year-ago fiscal quarter’s reading when it reports third-quarter 2022 earnings on Oct 26. The Zacks Consensus Estimate for quarterly revenues is pegged at $6,220 million, suggesting a decline of 1.7% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has declined in the past 30 days to 55 cents per share, indicating a 15.4% decrease from the figure reported in the prior-year fiscal quarter. The renowned food company has a trailing four-quarter earnings surprise of 14.8%, on average. KHC delivered an earnings surprise of 4.5% in the last reported quarter.
Factors to Consider
Kraft Heinz’s upcoming results are likely to reflect the adverse impact of escalated costs. In a recent release, Kraft Heinz raised its inflation forecast. The company now projects full-year inflation of almost 20%, higher than the earlier expectation of high-teen inflation. This raises concerns for the quarter under review.
The Kraft Heinz Company Price, Consensus and EPS Surprise
That said, the company has been benefiting from its pricing strategy. However, the elasticity impact of pricing actions and supply constraints weighed on the company’s volumes in the last reported quarter. The continuation of these downsides may have affected Kraft Heinz’s third-quarter performance.
The company’s focus on the operating model (laid out in September 2020) is noteworthy. The model incorporates five key elements — People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth.
Moreover, Kraft Heinz has been committed to its transformation plan, as part of which its AGILE@SCALE strategy bodes well.
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 has a Zacks Rank #3 and an Earnings ESP of -4.14%. 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 worth considering as our model shows that these have the right combination of elements to beat earnings this season.
Archer Daniels Midland (ADM - Free Report) currently has an Earnings ESP of +4.06% and a Zacks Rank #3. ADM is likely to register a top and bottom-line improvement when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Archer Daniels’ quarterly revenues is pegged at $22.9 billion, which indicates an improvement of 12.6% from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS of $1.42 suggests 46.4% growth from the figure reported in the year-ago fiscal quarter. ADM has a trailing four-quarter earnings surprise of 20.1%, on average.
Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +1.36% and a Zacks Rank of 3. BYND is likely to register a decline in the top line from the year-earlier quarter’s reported number when it reports third-quarter 2022 results.
The consensus mark for Beyond Meat’s bottom line has declined by a penny over the past 30 days to a loss of $1.10 per share. A loss of 87 cents was reported in the year-ago fiscal quarter.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +2.49% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of 3.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has remained stable in the past 30 days at 96 cents per share, suggesting a decline of 11.9% from the year-ago quarter’s tally. K delivered an earnings beat of 13.3%, on average, in the trailing four quarters.
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Kraft Heinz (KHC) Q3 Earnings Upcoming: Key Factors to Note
The Kraft Heinz Company (KHC - Free Report) is likely to register top and bottom-line declines from the respective year-ago fiscal quarter’s reading when it reports third-quarter 2022 earnings on Oct 26. The Zacks Consensus Estimate for quarterly revenues is pegged at $6,220 million, suggesting a decline of 1.7% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has declined in the past 30 days to 55 cents per share, indicating a 15.4% decrease from the figure reported in the prior-year fiscal quarter. The renowned food company has a trailing four-quarter earnings surprise of 14.8%, on average. KHC delivered an earnings surprise of 4.5% in the last reported quarter.
Factors to Consider
Kraft Heinz’s upcoming results are likely to reflect the adverse impact of escalated costs. In a recent release, Kraft Heinz raised its inflation forecast. The company now projects full-year inflation of almost 20%, higher than the earlier expectation of high-teen inflation. This raises concerns for the quarter under review.
The Kraft Heinz Company Price, Consensus and EPS Surprise
The Kraft Heinz Company price-consensus-eps-surprise-chart | The Kraft Heinz Company Quote
That said, the company has been benefiting from its pricing strategy. However, the elasticity impact of pricing actions and supply constraints weighed on the company’s volumes in the last reported quarter. The continuation of these downsides may have affected Kraft Heinz’s third-quarter performance.
The company’s focus on the operating model (laid out in September 2020) is noteworthy. The model incorporates five key elements — People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth.
Moreover, Kraft Heinz has been committed to its transformation plan, as part of which its AGILE@SCALE strategy bodes well.
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 has a Zacks Rank #3 and an Earnings ESP of -4.14%. 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 worth considering as our model shows that these have the right combination of elements to beat earnings this season.
Archer Daniels Midland (ADM - Free Report) currently has an Earnings ESP of +4.06% and a Zacks Rank #3. ADM is likely to register a top and bottom-line improvement when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Archer Daniels’ quarterly revenues is pegged at $22.9 billion, which indicates an improvement of 12.6% from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS of $1.42 suggests 46.4% growth from the figure reported in the year-ago fiscal quarter. ADM has a trailing four-quarter earnings surprise of 20.1%, on average.
Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +1.36% and a Zacks Rank of 3. BYND is likely to register a decline in the top line from the year-earlier quarter’s reported number when it reports third-quarter 2022 results.
The consensus mark for Beyond Meat’s bottom line has declined by a penny over the past 30 days to a loss of $1.10 per share. A loss of 87 cents was reported in the year-ago fiscal quarter.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +2.49% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of 3.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has remained stable in the past 30 days at 96 cents per share, suggesting a decline of 11.9% from the year-ago quarter’s tally. K delivered an earnings beat of 13.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.