Kraft Heinz's Earnings: A Preview

Kraft Heinz KHC is preparing to release its quarterly earnings on Tuesday, 2025-04-29. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Kraft Heinz to report an earnings per share (EPS) of $0.60.

The market awaits Kraft Heinz's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.06, leading to a 2.2% increase in the share price the following trading session.

Here's a look at Kraft Heinz's past performance and the resulting price change:

Stock Performance

Shares of Kraft Heinz were trading at $29.49 as of April 25. Over the last 52-week period, shares are down 24.67%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Insights on Kraft Heinz

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Kraft Heinz.

The consensus rating for Kraft Heinz is Neutral, derived from 13 analyst ratings. An average one-year price target of $29.77 implies a potential 0.95% upside.

Comparing Ratings with Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Hershey, General Mills and Tyson Foods, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Hershey, with an average 1-year price target of $159.36, suggesting a potential 440.39% upside.
• Analysts currently favor an Neutral trajectory for General Mills, with an average 1-year price target of $62.25, suggesting a potential 111.09% upside.
• Analysts currently favor an Neutral trajectory for Tyson Foods, with an average 1-year price target of $60.33, suggesting a potential 104.58% upside.

Insights: Peer Analysis

Within the peer analysis summary, vital metrics for Hershey, General Mills and Tyson Foods are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Kraft Heinz ranks at the bottom for Revenue Growth and Gross Profit, while it is in the middle for Return on Equity.

Delving into Kraft Heinz's Background

In July 2015, Kraft merged with Heinz to create one of North America's largest food and beverage manufacturers. Beyond its namesake brands, the combined firm's portfolio includes Oscar Mayer, Velveeta, and Philadelphia. While the retail channel drives around 85% of its total sales, the firm also maintains a growing foodservice presence. Outside North America, Kraft Heinz's global reach counts a distribution network in Europe and emerging markets that drives nearly 25% of its consolidated sales base, as its products are sold in more than 190 countries and territories.

Key Indicators: Kraft Heinz's Financial Health

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Decline in Revenue: Over the 3 months period, Kraft Heinz faced challenges, resulting in a decline of approximately -4.14% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Kraft Heinz's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 32.41%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Kraft Heinz's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.37%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Kraft Heinz's ROA stands out, surpassing industry averages. With an impressive ROA of 2.41%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Kraft Heinz's debt-to-equity ratio is below the industry average at 0.4, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Kraft Heinz visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.