KHC - Kraft Heinz stock gains as price increases aid earnings beat raised guide

2023-05-03 07:14:37 ET

The Kraft Heinz Company ( NASDAQ: KHC ) shares carried higher in premarket action after the consumer staples provider posted a beat on Q1 estimates and elevating full-year guidance.

The Pittsburgh-based parent of Oscar Mayer, Kool-Aid, and more notched $0.68 in earnings per share for the quarter, coming in $0.08 better than analyst estimates. Meanwhile, a 7.3% rise in revenue as compared to Q1 2022 to $6.49B was $100M above the Street consensus.

Management credited a 14.7% increase in prices for offsetting a 5.3% decline in volume. Sales in the International segment jumped 18.1% supported by an over 19% rise in prices.

"We delivered strong results in the first quarter of 2023, with net sales growth across both our North America and International zones that continues to be fueled by Foodservice, Emerging Markets, and U.S. Retail GROW platforms,” CEO Miguel Patricio commented. “Our team's continued focus on executing against the strategy is coming to fruition, but it's not time to declare victory just yet. We remain committed to advancing our business transformation, and we are confident we have the right strategy in place to win with customers and consumers, and to deliver profitable growth and create value for our stockholders.”

Management reaffirmed organic net sales growth guidance in the range of 4% to 6% year over year and hiked adjusted EPS guidance to be in the range of $2.83 to $2.91, up from a prior guide of between $2.67 and $2.73. The updated forecast is also well above the consensus expectation of $2.72.

Shares of Kraft Heinz ( KHC ) rose 1.3% in premarket action after the earnings announcement .

Elsewhere, the company declared its regular quarterly dividend .

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