KHC - Kraft Heinz: Current Income Growth May Not Be Sustainable
2024-04-10 03:26:39 ET
Summary
- Sustainable revenue and EPS growth are necessary for long-term gains, not just increasing earnings per share in the short term.
- Some companies have relied on unsustainable price increases, leading to underperformance compared to broader indexes.
- Warning signs in earnings reports include low net sales growth, negative sales growth compared to previous quarters, declining volumes, and high debt levels.
Not all earnings growth is created equally. While I'm the short-term, increasing earnings per share will usually provide solid shareholder returns, long-term gains usually require both sustainable revenue and EPS growth....
Kraft Heinz: Current Income Growth May Not Be Sustainable