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Food Stocks Earnings Scheduled for Aug 4: KHC, K & More
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We are in the thick of the Q2 earnings season and investors aren’t satisfied as there is no sign of growth. Having said that, the rate of decline is seen to be moderating from the previous quarter, pacifying investors' concern to an extent. The quarter is on track to be the fifth in a row to record an earnings decline for the S&P 500 index.
If we summarize the performance of the 317 S&P 500 members that have reported financial results so far, we will see that 72.9% of the companies beat on earnings and 53.6% surpassed revenue estimates, as per our Earnings Preview report. However, total earnings for these companies were down 3.3% year over year while revenues declined 0.9%.
In this scenario, investors are resorting to safe haven stocks and the consumer staples sector appears to be quite reliable.
Overall, the sector has reported modest results this quarter. Lower gas prices, an improving job scenario and increasing consumer confidence have been supporting the improvement in results.
In the consumer staples sector, 51.6% companies have reported Q2 earnings as of Jul 29. Out of these, 81.3% of the companies have posted an earnings beat, while 43.8% have surpassed revenue estimates. Though total earnings for the sector are expected to drop 1.4% due to flat revenues and 0.2% lower margins, it might prove to be profitable in the long term.
Food stocks are particularly doing well in Q2. Leading firms from the industry like The Hershey’s Company (HSY - Free Report) , Pinnacle Foods, Inc. , B&G Foods, Inc. (BGS - Free Report) , Colgate-Palmolive Co. (CL - Free Report) , Mondelez International, Inc. (MDLZ - Free Report) and many others have delivered better-than-expected Q2 earnings results despite currency headwinds and the sluggishness in emerging markets.
Here we have four food stocks, which are scheduled to release their second-quarter numbers on Aug 4. Let's see how things are shaping up for their respective announcements.
The Kraft Heinz Company (KHC - Free Report) is scheduled to report after market close. The packaged food manufacturer has an Earnings ESP of +2.82% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the second quarter earnings is pegged at 71 cents per share. Additionally, the company has delivered an average positive earnings surprise of 4.46% in the trailing four quarters.
Kraft Heinz has been seeing top-line weakness over the past several quarters. The company is witnessing lower volumes and share losses in the U.S. due to weak category trends. Despite relatively soft sales, cost savings have led to better margins, primarily in the developed markets of the U.S. and Europe. We expect the trend to continue in the second quarter. (Read: Kraft Heinz: What Will Q2 Earnings Release Unveil?).
Kellogg Company (K - Free Report) is slated to release its results before the opening bell. The company has an Earnings ESP of 0.00% and a Zacks Rank #4. The Zacks Consensus Estimate for second quarter earnings is pegged at 91 cents. The cereal and snacks company delivered positive earnings surprises in each of the past four quarters with an average surprise of 3.29%.
Kellogg has been struggling to drive sales over the past two years primarily due to weak performance by its cereal products in developed markets as well as a soft U.S. snacks businesses owing to lower demand. Though cost savings from its re-structuring program, Project K, are being deployed for renovation, innovation and brand support, the U.S. snacks business remains a drag. Further, currency headwinds will limit revenue growth to some extent in the second quarter. (Read: Can Kellogg Keep the Earnings Streak Alive in Q2?).
Post Holdings, Inc. (POST - Free Report) is a manufacturer, marketer and distributor of branded ready-to-eat cereals in the United States and Canada. It will report its results after market close. It has an Earnings ESP of +14.89% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate is pegged at 47 cents. Additionally, the company has delivered an average positive earnings surprise of 345.14% in the trailing four quarters.
Treehouse Foods, Inc. (THS - Free Report) will report its results before the opening bell. This food manufacturer has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate is pegged at 54 cents. Additionally, the company has delivered an average positive earnings surprise of 9.17% in the trailing four quarters.
Stay tuned! Check later on our full write-up on earnings releases of these stocks.
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Food Stocks Earnings Scheduled for Aug 4: KHC, K & More
We are in the thick of the Q2 earnings season and investors aren’t satisfied as there is no sign of growth. Having said that, the rate of decline is seen to be moderating from the previous quarter, pacifying investors' concern to an extent. The quarter is on track to be the fifth in a row to record an earnings decline for the S&P 500 index.
If we summarize the performance of the 317 S&P 500 members that have reported financial results so far, we will see that 72.9% of the companies beat on earnings and 53.6% surpassed revenue estimates, as per our Earnings Preview report. However, total earnings for these companies were down 3.3% year over year while revenues declined 0.9%.
In this scenario, investors are resorting to safe haven stocks and the consumer staples sector appears to be quite reliable.
Overall, the sector has reported modest results this quarter. Lower gas prices, an improving job scenario and increasing consumer confidence have been supporting the improvement in results.
In the consumer staples sector, 51.6% companies have reported Q2 earnings as of Jul 29. Out of these, 81.3% of the companies have posted an earnings beat, while 43.8% have surpassed revenue estimates. Though total earnings for the sector are expected to drop 1.4% due to flat revenues and 0.2% lower margins, it might prove to be profitable in the long term.
Food stocks are particularly doing well in Q2. Leading firms from the industry like The Hershey’s Company (HSY - Free Report) , Pinnacle Foods, Inc. , B&G Foods, Inc. (BGS - Free Report) , Colgate-Palmolive Co. (CL - Free Report) , Mondelez International, Inc. (MDLZ - Free Report) and many others have delivered better-than-expected Q2 earnings results despite currency headwinds and the sluggishness in emerging markets.
Here we have four food stocks, which are scheduled to release their second-quarter numbers on Aug 4. Let's see how things are shaping up for their respective announcements.
The Kraft Heinz Company (KHC - Free Report) is scheduled to report after market close. The packaged food manufacturer has an Earnings ESP of +2.82% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the second quarter earnings is pegged at 71 cents per share. Additionally, the company has delivered an average positive earnings surprise of 4.46% in the trailing four quarters.
Kraft Heinz has been seeing top-line weakness over the past several quarters. The company is witnessing lower volumes and share losses in the U.S. due to weak category trends. Despite relatively soft sales, cost savings have led to better margins, primarily in the developed markets of the U.S. and Europe. We expect the trend to continue in the second quarter. (Read: Kraft Heinz: What Will Q2 Earnings Release Unveil?).
KRAFT HEINZ CO Price and EPS Surprise
KRAFT HEINZ CO Price and EPS Surprise | KRAFT HEINZ CO Quote
Kellogg Company (K - Free Report) is slated to release its results before the opening bell. The company has an Earnings ESP of 0.00% and a Zacks Rank #4. The Zacks Consensus Estimate for second quarter earnings is pegged at 91 cents. The cereal and snacks company delivered positive earnings surprises in each of the past four quarters with an average surprise of 3.29%.
Kellogg has been struggling to drive sales over the past two years primarily due to weak performance by its cereal products in developed markets as well as a soft U.S. snacks businesses owing to lower demand. Though cost savings from its re-structuring program, Project K, are being deployed for renovation, innovation and brand support, the U.S. snacks business remains a drag. Further, currency headwinds will limit revenue growth to some extent in the second quarter. (Read: Can Kellogg Keep the Earnings Streak Alive in Q2?).
KELLOGG CO Price, Consensus and EPS Surprise
KELLOGG CO Price, Consensus and EPS Surprise | KELLOGG CO Quote
Post Holdings, Inc. (POST - Free Report) is a manufacturer, marketer and distributor of branded ready-to-eat cereals in the United States and Canada. It will report its results after market close. It has an Earnings ESP of +14.89% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate is pegged at 47 cents. Additionally, the company has delivered an average positive earnings surprise of 345.14% in the trailing four quarters.
POST HOLDINGS Price and EPS Surprise
POST HOLDINGS Price and EPS Surprise | POST HOLDINGS Quote
Treehouse Foods, Inc. (THS - Free Report) will report its results before the opening bell. This food manufacturer has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate is pegged at 54 cents. Additionally, the company has delivered an average positive earnings surprise of 9.17% in the trailing four quarters.
TREEHOUSE FOODS Price and EPS Surprise
TREEHOUSE FOODS Price and EPS Surprise | TREEHOUSE FOODS Quote
Stay tuned! Check later on our full write-up on earnings releases of these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>