Pittsburgh, Pennsylvania-based The Kraft Heinz Company (KHC) manufactures and markets food and beverage products. With a market cap of $35.4 billion, the company distributes dairy products, sauces, flavored milk powders, and other products. The food giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Feb. 12.
Ahead of the event, analysts expect KHC to report a profit of $0.78 per share on a diluted basis, unchanged from the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect KHC to report EPS of $3, up marginally from $2.98 in fiscal 2023. Its EPS is expected to rise 1.7% year over year to $3.05 in fiscal 2025.
KHC stock has considerably underperformed the S&P 500’s ($SPX) 26.5% gains over the past 52 weeks, with shares down 22.6% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 6.8% gains over the same time frame.
Kraft Heinz struggles to consistently increase demand due to shifting consumers preferences, intense competition, and a portfolio heavily reliant on legacy brands.
On Oct. 30, KHC shares closed down more than 3% after reporting its Q3 results. Its adjusted EPS of $0.75 exceeded Wall Street expectations of $0.74. The company’s revenue was $6.38 billion, failing to meet Wall Street forecasts of $6.41 billion. KHC expects full-year adjusted EPS in the range of $3.01 to $3.07.
Analysts’ consensus opinion on KHC stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 18 analysts covering the stock, five advise a “Strong Buy” rating, 12 give a “Hold,” and one recommends a “Strong Sell.” KHC’s average analyst price target is $34.89, indicating a potential upside of 19.2% from the current levels.
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