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.
Factors to Know Ahead of Kraft Heinz (KHC) Q1 Earnings
Read MoreHide Full Article
The Kraft Heinz Company (KHC - Free Report) is scheduled to report first-quarter 2020 financial results on Apr 30, before the market opens. In the trailing three quarters, the company’s bottom line outperformed the Zacks Consensus Estimate by 13.4%, on average. In the last reported quarter, the company beat the consensus mark by 5.9%.
We note that the Zacks Consensus Estimate for earnings for the quarter under review has moved up by 10.2% over the past 30 days to 54 cents. The Zacks Consensus Estimate for revenues is pegged at $6,142 million.
The Kraft Heinz Company Price, Consensus and EPS Surprise
In a recent press release, Kraft Heinz notified that it has been witnessing higher consumer demand for its products. This can be attributed to panic-induced stockpiling amid the coronavirus outbreak. Impressively, for first-quarter 2020 management expects net sales increase of nearly 3% year over year. Further, the company anticipates organic net sales growth of approximately 6% in the quarter to be reported. The company had earlier envisioned a low single-digit decline in organic net sales for the first quarter.
However, the company informed that it does not expect benefits from increased sales to flow through to net income/(loss) from continuing operations, adjusted EBITDA as well as earnings per share in the first quarter. This is due to additional expenses incurred to support growth. Also, we note that key commodity cost inflation and increase in manufacturing expenses remain concerns.
Nonetheless, the company’s strategic endeavors such as efficient pricing strategy, enhancement of supply chain and product development are noteworthy. Further, it has been undertaking efforts to boost the e-commerce channel.
What the Zacks Model Unveils
Our proven model does not conclusively predict a beat for Kraft Heinz this earnings season. 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.
Although Kraft Heinz has a Zacks Rank #2, it has an Earnings ESP of -0.13%.
3 Stocks With a Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Campbell Soup Company (CPB - Free Report) has an Earnings ESP of +21.06% and a Zacks Rank #2.
Flowers Foods (FLO - Free Report) has an Earnings ESP of +7.77% and a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Factors to Know Ahead of Kraft Heinz (KHC) Q1 Earnings
The Kraft Heinz Company (KHC - Free Report) is scheduled to report first-quarter 2020 financial results on Apr 30, before the market opens. In the trailing three quarters, the company’s bottom line outperformed the Zacks Consensus Estimate by 13.4%, on average. In the last reported quarter, the company beat the consensus mark by 5.9%.
We note that the Zacks Consensus Estimate for earnings for the quarter under review has moved up by 10.2% over the past 30 days to 54 cents. The Zacks Consensus Estimate for revenues is pegged at $6,142 million.
The Kraft Heinz Company Price, Consensus and EPS Surprise
The Kraft Heinz Company price-consensus-eps-surprise-chart | The Kraft Heinz Company Quote
Key Things to Note
In a recent press release, Kraft Heinz notified that it has been witnessing higher consumer demand for its products. This can be attributed to panic-induced stockpiling amid the coronavirus outbreak. Impressively, for first-quarter 2020 management expects net sales increase of nearly 3% year over year. Further, the company anticipates organic net sales growth of approximately 6% in the quarter to be reported. The company had earlier envisioned a low single-digit decline in organic net sales for the first quarter.
However, the company informed that it does not expect benefits from increased sales to flow through to net income/(loss) from continuing operations, adjusted EBITDA as well as earnings per share in the first quarter. This is due to additional expenses incurred to support growth. Also, we note that key commodity cost inflation and increase in manufacturing expenses remain concerns.
Nonetheless, the company’s strategic endeavors such as efficient pricing strategy, enhancement of supply chain and product development are noteworthy. Further, it has been undertaking efforts to boost the e-commerce channel.
What the Zacks Model Unveils
Our proven model does not conclusively predict a beat for Kraft Heinz this earnings season. 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.
Although Kraft Heinz has a Zacks Rank #2, it has an Earnings ESP of -0.13%.
3 Stocks With a Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Hain Celestial (HAIN - Free Report) has an Earnings ESP of +9.24% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Campbell Soup Company (CPB - Free Report) has an Earnings ESP of +21.06% and a Zacks Rank #2.
Flowers Foods (FLO - Free Report) has an Earnings ESP of +7.77% and a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>