Kraft Heinz Set to Report Fourth-Quarter Earnings Amid Challenges
Pittsburgh, Pennsylvania-based The Kraft Heinz Company (KHC) is a significant player in the food and beverage industry. With a market capitalization of $35.4 billion, Kraft Heinz has a wide range of products, including dairy items, sauces, and flavored milk powders. The company plans to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, February 12.
Before this announcement, analysts predict that KHC will report an earnings per share (EPS) of $0.78 on a diluted basis, the same as last year’s fourth quarter. Notably, Kraft Heinz has managed to outperform Wall Street’s earnings estimates in the previous four quarters.
Looking at the full year, analysts forecast that KHC’s EPS will be $3, a slight increase from the $2.98 reported in fiscal 2023. Expectations for fiscal 2025 suggest that EPS will rise by 1.7%, reaching $3.05.
However, KHC’s stock has faced considerable challenges, underperforming the S&P 500, which gained 26.5% over the past year. KHC shares dropped 22.6% in the same period. The stock also lagged behind the Consumer Staples Select Sector SPDR Fund (XLP), which increased by 6.8% during that time.
Kraft Heinz encounters difficulties in boosting demand due to changing consumer preferences, fierce competition, and its reliance on traditional brands.
On October 30, KHC shares fell by over 3% after reporting its third-quarter results. The company’s adjusted EPS of $0.75 exceeded Wall Street’s estimate of $0.74, yet revenue of $6.38 billion fell short of forecasts of $6.41 billion. Kraft Heinz anticipates full-year adjusted EPS will range from $3.01 to $3.07.
Overall, analysts maintain a moderately bullish stance on KHC stock, reflected in a “Moderate Buy” rating. Among 18 analysts following the stock, five recommend a “Strong Buy,” 12 suggest a “Hold,” and one issues a “Strong Sell.” The average analyst price target for KHC stands at $34.89, indicating a potential upside of 19.2% based on current prices.
On the date of publication,
Neha Panjwani
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