CPB - Kraft Heinz Earnings Preview: Wall Street pegs revenue to be $6.8 billion

2023-08-01 13:34:52 ET

Kraft Heinz Company ( NASDAQ: KHC ) is set to post their second quarter results on Tuesday before markets open.

Wall Street expects Kraft Heinz to post an 8.6% rise in earnings per shares (EPS) to $0.76, while revenue is expected to rise 4% at $6.81 billion.

Despite hiking prices for its packaged products to offset higher costs for raw materials, the Pittsburgh-based parent of Oscar Mayer, Kool-Aid saw resilient demand for its products this year as consumers are paying for their favorite snacks and seasonings even in a soft spending environment.

A recent SA contributor analysis pointed out that despite facing strong competition inside the food industry, the company has remained familiar with consumers across the United States while also attempting to expand international footing.

U.S. consumer confidence in June touching its highest level since July 2021 is also a good sign for investors.

However, with the resumption of student loan repayments, analysts believe that U.S. consumers will likely disproportionately reduce spending on soft goods in comparison to other categories as they shift funds to pay down debt.

Over the last three months, Kraft Heinz EPS estimates have seen 11 upward revisions and no downward revisions, while revenue estimates have seen four upward revisions, compared to six downward moves.

Analysts are most bullish on the stock with Wall Street and Seeking Alpha analysts rating the stock a “buy”, whereas Seeking Alpha’s Quant Ratings considers the stock a “hold”.

Over the last two years, the company has beaten both revenue and EPS estimates 100% of the time.

Shares of the company has lost nearly 12% so far this year, versus peer including Campbell Soup Company ( CPB ) and General Mills ( GIS ), which showed a decline of 19% and 11% respectively.

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