The Kraft Heinz Company KHC is likely to register a top-line decline when it reports fourth-quarter 2024 earnings on Feb. 12. The Zacks Consensus Estimate for revenues is pegged at $6.66 billion, indicating a 2.9% decline from the prior-year quarter’s reported figure.

The consensus mark for earnings has dipped by a penny in the past 30 days to 78 cents per share, which is in line with the figure reported in the year-ago quarter. KHC has a trailing four-quarter earnings surprise of 2.7%, on average.

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KHC: Key Factors to Watch

The ongoing struggles in the consumer environment and persistent inflation concerns have dampened consumer sentiment and increased the focus on value-seeking. This led to a slower-than-expected recovery across the industry.  As a result, The Kraft Heinz Company has been experiencing weak volume performance over the past few quarters. Volatile currency movements are also a concern for the company.

For full-year 2024, organic net sales are expected to be at the lower end of the down 2% to flat year-over-year range, which raises concerns over the quarter under review. For the fourth quarter of 2024, our model suggests organic sales decline of 2.1%, with volumes expected to be down 3.1% and pricing up 1.1%. 

Kraft Heinz has been implementing effective pricing strategies, which have been offering respite amid inflationary pressures.  Focus on three key pillars — Foodservice, Emerging Markets and U.S. Retail Grow platforms, has also been working well. Apart from this, Kraft Heinz is likely to have gained from innovation. On its third-quarter 2024 earnings call, management highlighted that year to date, innovation as a percentage of organic net sales reached 2.8%, marking a 100 bps increase from 2023.

Earnings Whispers for KHC Stock

Our proven model doesn’t conclusively predict an earnings beat for The Kraft Heinz Company this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. 

The Kraft Heinz Company carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -0.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

US Foods Holding Corp. USFD currently has an Earnings ESP of +2.68% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for US Foods Holding’s quarterly revenues is pegged at $9.47 billion, which suggests 6% growth from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for US Foods Holding’s quarterly earnings per share is pegged at 80 cents, indicating a 25% increase from the year-ago period. USFD delivered an earnings surprise of 3.7% in the last reported quarter.

The Coca-Cola Company KO currently has an Earnings ESP of +0.30% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.69 billion, which indicates a decrease of 1.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Coca-Cola’s fourth-quarter 2024 EPS is pegged at 51 cents, which implies a 4.1% increase year over year. KO has a trailing four-quarter earnings surprise of 3.9%, on average. 

Walmart WMT currently has an Earnings ESP of +0.15% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Walmart’s quarterly revenues is pegged at $179.4 billion, which suggests an increase of 3.5% from the prior-year quarter.

The Zacks Consensus Estimate for Walmart’s quarterly earnings per share is pegged at 64 cents, indicating 6.7% growth from the year-ago period. WMT has a trailing four-quarter earnings surprise of 9.3%, on average.

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CocaCola Company (The) (KO) : Free Stock Analysis Report

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