Kraft Heinz (NASDAQ:KHC) reported better-than-expected Q1 results to see its shares trade about 3% higher in pre-open Wednesday trading.
Heinz franchise owner posted EPS of $0.68 on revenue of $6.49 billion, beating the consensus for earnings of $0.60 on revenue of $6.38B. Organic revenue grew 9.4%, fueled by price hikes.
"We delivered strong results in the first quarter of 2023, with net sales growth across both our North America and International zones that continues to be fueled by Foodservice, Emerging Markets, and U.S. Retail GROW platforms," said Kraft Heinz CEO and Chair of the Board Miguel Patricio.
The company boosted its FY profit outlook to $2.83-2.91 from the prior $2.67-2.75 range and above the consensus of $2.72. Organic revenue is seen rising 4-6%, better than the expected 4.9%.
“We expect the stock to trade higher on the back of robust results and raised outlook,” Goldman Sachs analysts commented.
Stifel analysts also weighed in positively on Kraft Heinz after today’s earnings release.
“We expect the stock to react favorably to the better than anticipated results in the first quarter and raised EBITDA guidance with the company now targeting EBITDA growth ahead of its long-term algorithm. We continue with our Buy rating and $44 target price reflecting a 12x EV/EBITDA multiple on our FY23 estimates, a level we believe appropriately values the shares about in line with its large-cap food peers.”