Kraft Heinz (NASDAQ:KHC) Co. saw its shares increase 1.7% in premarket trading today after releasing its Q3 earnings, which surpassed expectations. The company also raised its full-year outlook, despite a shortfall in sales estimates.
The net income for the quarter was reported at $262 million, down from $432 million in the same period last year. The adjusted earnings per share (EPS) reached 72 cents, exceeding the FactSet consensus of 66 cents. However, sales growth was modest, with a 1% rise to $6.57 billion. This was primarily due to a 5.4 percentage point decrease in volume and mix, counterbalanced by a 7.1% price increase.
CEO Miguel Patricio emphasized the company's focus on productivity enhancements and reinvestment into key areas such as marketing, technology, and R&D sectors.
Looking ahead, Kraft Heinz has revised its 2023 EPS guidance upwards but anticipates organic sales growth to be at the lower end of its guidance range.
Over the past week, Kraft Heinz's shares have experienced a decline of 12.3%, compared to an S&P 500 loss of 8.4%.
InvestingPro Insights
Drawing from InvestingPro's real-time data, Kraft Heinz Co. (KHC) is currently trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 12.23. The company has seen an acceleration in revenue growth over the last twelve months as of Q2 2023, with a 5.71% increase. Furthermore, Kraft Heinz's market capitalization stands at 38.64B USD.
In line with two key InvestingPro Tips, the company is not only profitable over the last twelve months but also pays a significant dividend to shareholders, with a dividend yield of 5.09% as of August 31, 2023. Despite trading near its 52-week low, Kraft Heinz maintains a high shareholder yield, a potential indicator of value for investors.
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