Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Kraft Heinz misses revenue estimates after U.S. market share headwinds

Published 08/02/2023, 09:31 AM
Updated 08/02/2023, 09:27 AM
© Reuters.  Kraft Heinz (KHC) misses revenue estimates after US market share headwinds

Kraft Heinz (NASDAQ:KHC) is trading lower in early Wednesday trading after its revenue for the second quarter missed consensus estimates.

The food company reported Q2 EPS of $0.79, $0.03 better than the analyst estimate of $0.76. However, revenue for the quarter came in at $6.72 billion, up 2.6% YoY but below the consensus estimate of $6.82B.

At the time of writing, KHC is down around 0.7%, trading at $35.64.

The company said net sales were impacted by a 1.2 percentage point headwind from foreign currency and a negative 0.2 percentage point hit from acquisitions and divestitures.

"We delivered strong second-quarter results, growing net sales, profits and profitability. This is consistent with our strategy to accelerate profitable growth," said Kraft Heinz CEO and Chair of the Board Miguel Patricio.

However, Patricio acknowledged that the firm also faced headwinds within its US market share performance. "While we did face headwinds in the second quarter, particularly within U.S. market share performance, the action plans we laid out in the first quarter resulted in share trend improvement each month," he explained. "We expect these action plans, along with continued strong execution from our teams, to drive momentum through the second half of the year."

Looking ahead, the company sees its FY2023 earnings between $2.83 and $2.91 per share versus the consensus of $2.89.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.