We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What You Need to Know Ahead of Kraft Heinz (KHC) Q4 Earnings
Read MoreHide Full Article
The Kraft Heinz Company (KHC - Free Report) is likely to register top and bottom-line decline when it reports fourth-quarter 2023 earnings on Feb 14. The Zacks Consensus Estimate for quarterly revenues is pegged at $7 billion, indicating a decline of 5.6% from the prior-year quarter’s reported figure. The consensus mark for 2023 revenues is pinned at $26.8 billion, implying growth of 1% from the year-ago period’s reported actuals.
The Zacks Consensus Estimate for quarterly earnings has moved down 9.4% to 77 cents per share in the past 30 days, indicating a decline of 9.4% year over year. The consensus mark for 2023 earnings is pegged at $2.96 per share, indicating growth of 6.5% from the prior-year period’s level. KHC has a trailing four-quarter average earnings surprise of 9.9%.
Kraft Heinz is battling persistent inflation in areas like labor, tomatoes and sugar, although the inflation continues to moderate. Management expects mid-single-digit inflation for 2023. The company is also incurring high SG&A costs acro
ss marketing, R&D and technology. We anticipate a 16.2% increase in adjusted SG&A expenses for the fourth quarter of 2023, with the rate likely to have expanded 270 basis points to 14.9%.
The company’s significant international presence exposes it to the risk of adverse currency fluctuations. Management expects unfavorable currency rates to have hurt 2023 adjusted earnings per share by nearly 4 cents.
That being said, robust pricing strategies have been protecting the company’s margin performance amid inflation. Strength in the Kraft Heinz’s three key pillars — foodservice, emerging markets and U.S. Retail Grow platforms — are encouraging.
For 2023, management expects organic net sales growth in the lower end of 4-6%, while adjusted earnings per share is envisioned in the band of $2.91-$2.99. The company expects an adjusted gross margin expansion of 200-250 basis points (bps), driven by pricing and efficiencies in 2023. Our model suggests an adjusted gross margin expansion of 230 bps in 2023. The adjusted EBITDA growth (excluding the impacts of the 53rd week in 2022) is envisioned at 7-9%.
What the Zacks Model Unveils
Our proven model predicts 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 has a Zacks Rank #3 and an Earnings ESP of +0.14% at present.
Other Stocks With Favorable Combination
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from that 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 Inter Parfums’ quarterly earnings of 35 cents per share indicates a decline of 50.7% year over year. IPAR has a trailing four-quarter average earnings surprise of 45.7%.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of 3 at present. KO is likely to register top and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, indicating growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has remained unchanged in the past 30 days at 48 cents per share. The reported figure implies 6.7% growth from the year-ago quarter’s level. KO has a trailing four-quarter average earnings surprise of 5.1%.
Monster Beverage (MNST - Free Report) has an Earnings ESP of +1.65% and a Zacks Rank #3 at present. MNST is likely to register top and bottom-line growth when it releases fourth-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.8 billion, implying growth of 15.9% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings has remained unchanged in the past 30 days at 39 cents per share, indicating growth of 34.5% from the year-ago quarter’s reported number. MNST has a trailing four-quarter average earnings surprise of 1.9%.
Image: Bigstock
What You Need to Know Ahead of Kraft Heinz (KHC) Q4 Earnings
The Kraft Heinz Company (KHC - Free Report) is likely to register top and bottom-line decline when it reports fourth-quarter 2023 earnings on Feb 14. The Zacks Consensus Estimate for quarterly revenues is pegged at $7 billion, indicating a decline of 5.6% from the prior-year quarter’s reported figure. The consensus mark for 2023 revenues is pinned at $26.8 billion, implying growth of 1% from the year-ago period’s reported actuals.
The Zacks Consensus Estimate for quarterly earnings has moved down 9.4% to 77 cents per share in the past 30 days, indicating a decline of 9.4% year over year. The consensus mark for 2023 earnings is pegged at $2.96 per share, indicating growth of 6.5% from the prior-year period’s level. KHC has a trailing four-quarter average earnings surprise of 9.9%.
Kraft Heinz Company Price and EPS Surprise
Kraft Heinz Company price-eps-surprise | Kraft Heinz Company Quote
Things to Consider
Kraft Heinz is battling persistent inflation in areas like labor, tomatoes and sugar, although the inflation continues to moderate. Management expects mid-single-digit inflation for 2023. The company is also incurring high SG&A costs acro
ss marketing, R&D and technology. We anticipate a 16.2% increase in adjusted SG&A expenses for the fourth quarter of 2023, with the rate likely to have expanded 270 basis points to 14.9%.
The company’s significant international presence exposes it to the risk of adverse currency fluctuations. Management expects unfavorable currency rates to have hurt 2023 adjusted earnings per share by nearly 4 cents.
That being said, robust pricing strategies have been protecting the company’s margin performance amid inflation. Strength in the Kraft Heinz’s three key pillars — foodservice, emerging markets and U.S. Retail Grow platforms — are encouraging.
For 2023, management expects organic net sales growth in the lower end of 4-6%, while adjusted earnings per share is envisioned in the band of $2.91-$2.99. The company expects an adjusted gross margin expansion of 200-250 basis points (bps), driven by pricing and efficiencies in 2023. Our model suggests an adjusted gross margin expansion of 230 bps in 2023. The adjusted EBITDA growth (excluding the impacts of the 53rd week in 2022) is envisioned at 7-9%.
What the Zacks Model Unveils
Our proven model predicts 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 has a Zacks Rank #3 and an Earnings ESP of +0.14% at present.
Other Stocks With Favorable Combination
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from that 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 Inter Parfums’ quarterly earnings of 35 cents per share indicates a decline of 50.7% year over year. IPAR has a trailing four-quarter average earnings surprise of 45.7%.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of 3 at present. KO is likely to register top and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, indicating growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has remained unchanged in the past 30 days at 48 cents per share. The reported figure implies 6.7% growth from the year-ago quarter’s level. KO has a trailing four-quarter average earnings surprise of 5.1%.
Monster Beverage (MNST - Free Report) has an Earnings ESP of +1.65% and a Zacks Rank #3 at present. MNST is likely to register top and bottom-line growth when it releases fourth-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.8 billion, implying growth of 15.9% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings has remained unchanged in the past 30 days at 39 cents per share, indicating growth of 34.5% from the year-ago quarter’s reported number. MNST has a trailing four-quarter average earnings surprise of 1.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.