Kraft Heinz (KHC) Q3 Earnings Meet Estimates, Revenues Lag
Zacks Investment Research | Nov 02, 2017 08:51AM ET
The Kraft Heinz Company (NYSE:K) posted third-quarter 2017 results, wherein earnings met the Zacks Consensus Estimate but missed on revenues. Notably, the company’s shares decreased 1.5% in after-hours trading on Nov 1, in response to weaker sales results.
Earnings
Adjusted earnings per share of 83 cents were on par with the Zacks Consensus Estimate as well as the year-ago figure. Higher cost savings and improved net sales performance were offset by a higher tax rate.
Sales
Reported sales of $6.31 billion fell marginally shy of the Zacks Consensus Estimate of $6.32 billion by 0.1%. However, it increased just 0.7% year over year due to soft consumer demand in North America and Canada. That said, Kraft Heinz’s sales witnessed a marginal increase after declining in five of the last six quarters. The reported figure includes a favorable 0.4% impact from currency.
Organically (excluding currency), sales grew 0.3%.
Volume/mix declined 0.2% in the quarter compared with a decrease of 0.5% in the previous quarter. The narrower gap was due to growth in condiments and sauces globally. However, these were partly offset by overall lower shipments in the United States.
Pricing increased 0.5% in the quarter against a decrease of 0.4% in the preceding quarter.
The Kraft Heinz Company Price and EPS Surprise
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