KHC - Kraft Heinz Q4 preview: What to expect?

Kraft Heinz ( NASDAQ: KHC ) is scheduled to announce Q4 earnings results on Wednesday, February 15th, before market open.

The consensus EPS Estimate is $0.78 (-1.3% Y/Y) and the consensus Revenue Estimate is $7.23B (+7.7% Y/Y).

Over the last 3 months, EPS estimates have seen 5 upward revisions and 5 downward. Revenue estimates have seen 7 upward revisions and 0 downward.

The food giant delivered Q3 results ahead of the consensus expectations of analysts. Organic sales jumped 11.6% during the quarter, consisting of a 15.4% benefit from pricing and a 3.8% drop in volume/mix.

Higher pricing and efficiency gains more than offset higher supply chain costs and higher commodity costs during the quarter. Kraft Heinz ( KHC ) set expectations of high-single-digit percentage organic sales growth for 2022.

A recent SA contributor analysis characterized 2022 as a kind of lost year for Kraft Heinz, with the outlook for 2023 uncertain. Subdued inflation might allow for margin and thus an earnings recovery, but inflationary trends are still hard to read into according to the analysis.

Wells Fargo in a recent note also struck a cautious tone, saying it is not yet comfortable the company can deliver its 2-3% organic sales algorithm year-in/year-out. With investments to sustain, it estimates Kraft Heinz ( KHC ) profit growth will lag peers.

Shares over the past year are up around +15%, on par with peers Hershey ( HSY ) and General Mills ( GIS ).

Over the last 2 years, KHC has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.

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