Factors to Watch Ahead of Kraft Heinz's (KHC) Q4 Earnings
The Kraft Heinz Company KHC is likely to register a top-line increase from the respective year-ago fiscal quarter’s reading when it reports fourth-quarter 2022 earnings on Feb 15. The Zacks Consensus Estimate for quarterly revenues is pegged at $7,178 million, suggesting a rise of around 7% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has dipped by a penny in the past 30 days to 77 cents per share. This indicates a decline of 2.5% from the figure reported in the prior-year fiscal quarter.
This manufacturer and marketer of food and beverage products has a trailing four-quarter earnings surprise of 15.5%, on average. KHC delivered an earnings surprise of 14.6% in the last reported quarter.
The Kraft Heinz Company Price, Consensus and EPS Surprise
The Kraft Heinz Company price-consensus-eps-surprise-chart | The Kraft Heinz Company Quote
Factors to Consider
On its last earnings call, management highlighted that it expects the industry to continue facing several headwinds like elevated input costs, supply-chain challenges, currency volatility and increasing interest rates. Such headwinds have been weighing on below-the-line costs, consumer health and consumption trends.
However, KHC’s robust pricing actions bode well amid an inflationary cost scenario. We note that the company’s pricing has been reflecting growth in the North America and International segments.
Also, a focus on the operating model (laid out in September 2020) has been working well. The model incorporates five key elements, which include People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth. Additionally, management is on track with AGILE@SCALE to accelerate the profit as part of its transformation phase.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for The Kraft Heinz Company this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
The Kraft Heinz Company has a Zacks Rank #3 and an Earnings ESP of +0.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering as our model shows that these also have the right combination of elements to beat earnings this season.
The J. M. Smucker Co. SJM has an Earnings ESP of +1.00% and a Zacks Rank #3. The Zacks Consensus Estimate for its third-quarter fiscal 2023 earnings is pegged at $2.14, calling for an 8.2% decline from the year-ago period figure. SJM has a trailing four-quarter earnings surprise of 18.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for The J. M. Smucker’s top line is pegged at $2.2 billion, suggesting growth of 7.8% from the prior-year quarter’s reported figure.
Freshpet, Inc. FRPT is likely to register top-and-bottom-line growth when it reports fourth-quarter 2022 results. FRPT has an Earnings ESP of +2.04% and a Zacks Rank #3. The Zacks Consensus Estimate for Freshpet’s bottom line has remained unchanged at a loss of 8 cents in the past 30 days compared with a loss of 21 cents reported in the year-ago period.
FRPT has a trailing four-quarter negative earnings surprise of roughly 88%, on average. The consensus mark for Freshpet’s top line is pegged at $151.1 million, calling for growth of 30.4% from the prior-year quarter’s reported figure.
Nu Skin NUS currently has an Earnings ESP of +11.32% and a Zacks Rank of 3. NUS is expected to register a top-and-bottom-line decline when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Nu Skin’s quarterly revenues is pegged at $543.8 billion, calling for a decline of 19.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 53 cents suggests a 52.3% decrease from the figure reported in the year-ago fiscal quarter. NUS has a trailing four-quarter negative earnings surprise of 5.3%, on average.
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The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Freshpet, Inc. (FRPT) : Free Stock Analysis Report
Nu Skin Enterprises, Inc. (NUS) : Free Stock Analysis Report
The Kraft Heinz Company (KHC) : Free Stock Analysis Report
