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Kraft Heinz Gets Earnings Bump on Higher Prices but Its Outlook DisappointsKraft Heinz Gets Earnings Bump on Higher Prices but Its Outlook Disappoints Vanjani, Karishma. Barron's (Online); New York Kraft Heinz delivered a profit outlook below expectations, even after higher prices continued to bolster the food and beverage manufacturer. The company said it expects adjusted earnings of between $2.67 and $2.75 per share for 2023. The midpoint of the estimate—$2.71—is lower than the $2.77 analysts' estimated. The lower-than-expected profit outlook can be partly attributed to foreign exchange fluctuations as Kraft Heinz made an allowance for a 4 cents per share "currency headwind." Large-cap companies like Kraft Heinz make a significant portion of their sales overseas, so much of their revenue is in international currencies. A strong greenback this year would make that revenue worth less in terms of dollars. The stock wavered as it opened the day. Following a rise in premarket trading, it was down 1% to $39.46. For the fourth quarter, the company (ticker: KHC) delivered adjusted profits of 85 cents per share on Wednesday. That's ahead of the consensus expectation of analysts tracked by FactSet, which was for 78 cents per share. Revenue of $7.38 billion also beat the expectation of $7.26 billion, driven by price increases. During the quarter that ended December, the value of products rose 15.2 percentage points versus the prior year period, Kraft Heinz said, to reflect an increase in product costs. Kraft Heinz is the latest in a long list of companies to have benefited from higher prices in the past quarter. Coca-Cola (KO) delivered higher-than-expected fourth-quarter revenue on Tuesday as the value of its products increased by 12%, and it expects further increases in 2023. Rival PepsiCo's (PEP) earnings were also helped by higher prices . |
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Msg # | Subject | Author | Recs | Date Posted |
240 | Re: Kraft Heinz Gets Earnings Bump on Higher Prices but Its Outlook Disappoints | PinewoodsBear | 0 | 2/16/2023 9:13:48 PM |