72.78 -1.05 (-1.42%)
After hours: 4:50PM EDT
|Bid||73.80 x 1000|
|Ask||73.81 x 800|
|Day's Range||73.39 - 73.97|
|52 Week Range||44.87 - 74.49|
|Beta (3Y Monthly)||0.02|
|PE Ratio (TTM)||32.52|
|Earnings Date||May 2, 2019|
|Forward Dividend & Yield||0.91 (1.28%)|
|1y Target Est||68.79|
Kraft Heinz (NYSE:KHC) CEO Bernardo Hees, who gained notoriety on Wall Street as a cost-cutter, will now have to figure out how to invest money into the beleaguered packaged food company if its long-suffering shareholders ever hope to get any relief.Source: Mike Mozart via FlickrUnfortunately, Hees won't be able to just write a check to make KHC's problems go away. Like other packaged food companies, KHC has been hurt by the rising consumer demand for "fresh and healthy" ingredients at the expense of processed food. New York-based KHC made matters worse by making unrealistic forecasts for the savings of its 2015 merger, which loaded its balance sheet with more than $31 billion in debt. Plunging Share PriceKHC stock has plunged more than 64% since Unilever (NYSE:UL) rejected the company's unsolicited $143 billion offer. The stock was further bloodied by its recent announcement of disappointing earnings, a $15 billion write-down, a dividend cut and an SEC investigation into its accounting practices. S&P recently announced that it was reviewing KHC's debt for a possible downgrade after the company missed the deadline to file its annual report (form 10-K) with the Securities & Exchange Commission. InvestorPlace - Stock Market News, Stock Advice & Trading TipsDuring the company's earnings conference call, Hees tried to reassure investors that he was willing to deploy capital where it's needed. Hees is also is a partner with 3G Capital, the Brazilian private equity that owned Heinz and arranged with Warren Buffett for the merger with Kraft. * 6 Cheap Stocks That Cost Less Than $10 "In a nutshell, we plan to go to market in 2019 with a stronger innovation pipeline than we ever had, backed by more marketing dollars while leveraging advantaged category managed and go-to-market initiatives to win assortment and improve distribution across all channels, including e-commerce," He said. "And we plan to do this while we maintain industry-leading margins."Easier said than done since KHC clearly fired too many workers and damaged its brands, damage which won't be easy or cheap to fix.The company is trying to clean up the mess Hees helped create. According to media reports, Kraft Heinz is reviewing strategic options for its Maxwell House Coffee business including a possible sale and may dispose of other well-known brands such as Breakstone's Cottage Cheese and sour cream. Selling off poorly performing businesses is a step in the right direction though it isn't a substitute for a business strategy. The Oracle of OmahaIndeed, the growth through acquisitions approach isn't the answer for KHC. According to CNBC, the company passed on bidding for Pinnacle Foods and failed to make a compelling offer for Campbell Soup when it was being shopped around last year. KHC stock deserves to be in Wall Street's penalty box but it's not going to be in their forever. The company has a major fan in Buffett, who recently described the company as a "fabulous" business though he admitted that Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) "overpaid" for Kraft. He has no plans to liquidate his position.For investors with a large tolerance for risk, KHC is worth testing Buffett's maxim to "be fearful when others are greedy and to be greedy only when others are fearful." However, there are better places for investors to put their money in the consumer sector, including Campbell, Chuch & Dwight (NYSE:CHL) and Clorox (NYSE:CLX).As of this writing, Jonathan Berr did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Now Is the Right Time to Buy Kraft Heinz Stock appeared first on InvestorPlace.
What to Expect from Procter & Gamble’s Q3 2019 Results(Continued from Prior Part)Consensus target price indicates downsideThe majority of analysts continue to suggest “holds” on Procter & Gamble (PG) stock. The company has impressed
What to Expect from Procter & Gamble’s Q3 2019 Results(Continued from Prior Part)Positive surprise history Procter & Gamble (PG) has a long history of exceeding analysts’ EPS estimates. The company has surpassed Wall Street’s EPS
What to Expect from Procter & Gamble’s Q3 2019 ResultsPG is expected to sustain momentum Procter & Gamble (PG) is scheduled to announce its earnings results for the third quarter of fiscal 2019 before the market opens on April 23.
Kimberly-Clark's (KMB) Q1 earnings are likely to be hurt by escalated costs and foreign-currency headwinds. However, restructuring plans are likely to offer respite.
Why Analysts Have a Bleak Outlook for Kimberly-Clark’s Q1(Continued from Prior Part)Unattractive valuation Kimberly-Clark (KMB) stock has increased 8.1% so far this year and trades at a forward PE multiple of 18.7x, which seems unappealing, as
Why Analysts Have a Bleak Outlook for Kimberly-Clark’s Q1(Continued from Prior Part)Earnings to remain pressured We expect Kimberly-Clark’s (KMB) bottom line to register a YoY decline in the first quarter of 2019. Adverse currency rates, lower
Why Analysts Have a Bleak Outlook for Kimberly-Clark’s Q1(Continued from Prior Part)Factors to drag sales down Kimberly-Clark (KMB) has exceeded analysts’ sales estimate in the past two consecutive quarters thanks to the improvement in pricing.
Why Analysts Have a Bleak Outlook for Kimberly-Clark’s Q1Kimberly-Clark likely to disappoint investors in Q1Kimberly-Clark (KMB) is expected to announce its first-quarter results before the markets open on Monday, April 22. Analysts predict that
Procter & Gamble (PG) retains a commitment to reward shareholders by raising quarterly dividend by 4% to 74.59 cents per share.
Why JPMorgan Chase Has Downgraded Clorox Stock(Continued from Prior Part)Valuation could limit upsideWhile we’re impressed with the Clorox Company’s (CLX) better-than-expected earnings performance in the past several quarters, its cost headwinds
Why JPMorgan Chase Has Downgraded Clorox StockClorox downgraded to “underweight” The Clorox Company (CLX) stock fell ~1% on April 8 after JPMorgan Chase downgraded it to an “underweight” from a “neutral” and reduced its target price to
Why Wells Fargo Upgraded Procter & Gamble Stock(Continued from Prior Part)Valuation and decline in EPS a concern Procter & Gamble (PG) stock could benefit from the recent upgrade from Wells Fargo. Meanwhile, momentum in the base business
Why Wells Fargo Upgraded Procter & Gamble StockPG upgraded to “outperform”On April 8, Procter & Gamble (PG) stock was up about 1% in the pre-market session after Wells Fargo upgraded the stock. Wells Fargo upgraded its rating on Procter
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! Looking at Church & Dwight Co., Inc.'s (NYSE:CHD) earnings update in December 2018...
Church & Dwight Co., Inc. will host a conference call to discuss first quarter 2019 earnings results on May 2, 2019 at 10:00 a.m. Eastern time.
The stock market's robust 14.7% gain thus far in 2019, as measured by the S&P 500 Index (SPX) at today's open, has lifted a large number of stocks, and many investors forecast more gains as the economy strengthens. Goldman Sachs says, "real GDP growth will rebound to 3.0% in 2Q from the 0.7% pace in 1Q that encompasses the 34-day federal government shutdown," according to the firm's latest US Weekly Kickstart report. Goldman's latest US Quarterly Chartbook report identifies 40 stocks that their analysts expect to fall significantly, with these six topping the list with declines of nearly 20% or more: Juniper Networks Inc. (JNPR), Church & Dwight Co. Inc. (CHD), Clorox Co. (CLX), Realty Income Corp. (O), Ventas Inc. (VTR), and The Hershey Co. (HSY).
Church & Dwight (CHD) flaunts an impressive sales trend, owing to the strong Consumer International unit, focus on acquisitions and brand enhancement initiatives. However, margin woes remain.
As we already know from media reports and hedge fund investor letters, many hedge funds lost money in fourth quarter, blaming macroeconomic conditions and unpredictable events that hit several sectors, with technology among them. Nevertheless, most investors decided to stick to their bullish theses and their long-term focus allows us to profit from the recent […]
, manufacturer of household products like Arm & Hammer, will buy Flawless and Finishing Touch, a hair removal products maker, for up to $900 million. Flawless is owned by Ideavillage Products Corp. a private company. Shares of Church & Dwight rose 0.4% to $69.59 in premarket trading Thursday.
Church & Dwight Co. announced Thursday a deal to buy the Flawless and Finishing Touch hair removal products brands from Ideavillage Products Corp. in a deal valued at up to $900 million. Under terms of the deal, Church & Dwight will pay $475 million in cash, and an additional "earn-out" payment of up to $425 million based on 12-month net sales targets. The deal is expected to close in the second quarter of 2019. Flawless had sales of $180 million in the 12 months ended Dec. 31, 2018, and is ranked as the top women's electric hair removal brand in the U.S. Church & Dwight affirmed its 2019 adjusted EPS growth guidance of 7% to 9%, which includes earnings from Flawless and one-time transition costs, but does not include an estimated earn-out payment. The FactSet 2019 EPS consensus of $2.46 implies 8.4% growth. The stock, which edged up 0.4% in light premarket trade, has tacked on 5.5% over the past three months while the S&P 500 has gained 12.9%.
Church & Dwight Co., Inc. (CHD) has signed a definitive agreement with Ideavillage Products Corporation to acquire the FLAWLESS™ and FINISHING TOUCH™ brands of hair removal products (“FLAWLESS”), the market leader in women’s electric hair removal products, for approximately $475 million in cash plus an additional earn-out payment of up to a maximum of $425 million, in cash, based on a twelve-month net sales target ending no later than December 31, 2021. FLAWLESS’ net sales for the trailing twelve months ended December 31, 2018 were approximately $180 million with EBITDA approximating $55 million (approximately 30% EBITDA margin) over the same period. FLAWLESS is the #1 women’s electric hair removal brand in the U.S. focusing on brows and face while the women’s hair removal category has historically been focused on legs with manual razors and blade products.
What’s Ahead for KMB and CL Stock?(Continued from Prior Part)Ratings and target prices Most analysts recommend “hold” for Kimberly-Clark (KMB) and Colgate-Palmolive (CL) stock. Both companies’ top and bottom lines are expected to fall in