Kraft Heinz Posts Strong Q3 Results

Shares of food and beverage major The Kraft Heinz Company (KHC) declined marginally on Wednesday, even though the company reported better-than-expected third-quarter 2021 results. The stock, however, pared its loss slightly to close at $36.45 in the extended trading session.

Quarterly net sales declined 1.8% year-over-year to $6.3 billion due to a fall in U.S. net sales to $4.5 billion from $4.7 billion last year. However, the overall net sales figure surpassed the consensus estimate of $6.02 billion.

Earnings of $0.65 per share indicate a fall of 7.1% year-over-year but were able to beat the Street’s estimate of $0.58 per share.

For full-year 2021, the company expects its organic net sales growth to remain flat, compared to 2020. Meanwhile, it expects to post adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of more than $6.2 billion.

The CEO of Kraft Heinz, Miguel Patricio, said, “We are effectively adapting to near-term challenges while transforming our business and rejuvenating our iconic brands to better serve consumers for the long term. We still have much to do, but our momentum is strong and our strategy to bring agility to our scale is working, which is why we are increasing full-year expectations.” (See Kraft Heinzstock chart on TipRanks)

See Insiders’ Hot Stocks on TipRanks >>

On October 27, Jefferies analyst Robert Dickerson reiterated a Hold rating on the stock with a price target of $40, which implies upside potential of 9.9 from current levels.

Consensus among analysts is a Hold based on 1 Buy, 6 Holds and 1 Sell. The average Kraft Heinz price target of $39.25 implies upside potential of 7.8% from current levels.

Kraft Heinz scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained about 24.6% over the past year.

Related News:
Eli Lilly’s Q3 Earnings Miss but Revenues Beat Estimates
McDonald’s Soars 3.2% on Solid Q3 Results
Lockheed Posts Mixed Q3 Results; Shares Sink 12%

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts