Categories AlphaGraphs, Earnings, Retail

Earnings Preview: Kraft Heinz might be hit by a slow Q4 in retail

Condiments giant Kraft Heinz Company (KHC) is scheduled to post its earnings after the closing bell on Thursday, Feb, 21.

The Street expects the maker of Jell-O pudding to earn 94 cents a share on revenue of $6.95 billion. This represents a 4.4% change in bottom-line and a 1.1% growth in top-line.

However, with the recent report by the US Department of Commerce regarding the retail slowdown in the country in December, many are of the view that company such as Kraft Heinz might miss the final quarter estimates.

This could put the company that brings us Oscar Mayer meats and Velveeta cheese in a precarious position as it might trigger a stock sell-off — adding to the woes of the already straining retail landscape.

With American fast-food giants post year-end earnings this time around, investors would also be on the lookout for how fierce competition is affecting leading players like Domino’s Pizza (DPZ) and McDonald’s (MCD). Domino’s would also be reporting earlier on the same day.


In the previously reported third quarter, the surge in overseas sales and tax benefits pushed up Kraft Heinz’ adjusted earnings beyond analyst estimates. Shares climbed shortly after the announcement, despite a drop in GAAP earnings.

The Kraft Heinz Company second quarter 2018 earnings

Net sales for the quarter inched up 0.7%, but organic net sales fell 0.4%. Sales declined in the US and Canada (North America region) but rose in other geographical areas.

Smaller new players entering the market have been taking a bite out of the company’s pie for some time now, but the upcoming quarterly report would also focus on the general retail behavior with lower-than-expected spending.

A few months ago, Kraft Heinz hinted at product revamps and renewed marketing efforts to revive sales momentum by year-end, especially to offset the squeeze on profitability from the rising cost inflation. Investors would also be looking for the results of these activities.

As the international brand reports earnings this week, many suggest keeping expectations low on fears of a retail slowdown. We’ll see how these factors really affected Kraft Heinz when it posts earnings on Thursday.



Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference, and much more!


Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment

Viewing Highlight