With a market cap of $40.1 billion, The Kraft Heinz Company (KHC) operates in the food and beverage industry, manufacturing and marketing a wide range of products under various renowned brands. Based in Pittsburgh, Pennsylvania, the company is expected to release its fiscal Q2 earnings results before the market opens on Wednesday, Jul. 31.
Ahead of this event, analysts project the packaged foods giant to report a profit of $0.73 per share, reflecting a decrease of 7.6% from $0.79 per share in the year-ago quarter. However, the company holds a solid track record of consistently surpassing Wall Street's bottom-line estimates in each of the last four quarterly reports. In the most recent quarter, KHC posted an EPS of $0.69, surpassing the consensus estimate by 1.5%.
For fiscal 2024, analysts forecast KHC to report EPS of $2.99, up marginally from $2.98 in fiscal 2023. Looking ahead to fiscal 2025, analysts anticipate EPS to grow 5% year over year to $3.14.
In 2024, Kraft Heinz slipped 8.9%, lagging behind the broader S&P 500 Index's ($SPX) 13.8% gain and the Nasdaq Food & Beverage ETF's (FTXG) marginal decrease on a YTD basis.
Shares of Kraft Heinz dropped 6% on May 1 after its Q1 sales of $6.41 billion missed Wall Street estimates as a result of facing consumer pushback against higher prices on branded products. Additionally, Kraft Heinz projected flat Q2 sales growth due to unplanned factory maintenance and a drop in sales volumes, heightening investor concerns.
Analysts' consensus view on Kraft Heinz stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, eight suggest a "Strong Buy," and the remaining eight recommend a "Hold."
The above configuration is slightly more bullish than three months ago, with seven analysts suggesting a "Strong Buy." The average analyst price target for KHC is $37.75, suggesting a potential upside of 12.4% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
