Shares of The Kraft Heinz Company (KHC) gained nearly 1% in pre-market trading after the food and beverage giant reported second-quarter earnings and revenue that topped analyst estimates. The company also reaffirmed its full-year outlook.
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The company behind Heinz Ketchup reported an EPS (earnings per share) of $0.69 for the quarter, beating the expected $0.64. Meanwhile, revenue came in at $6.35 billion, down 1.9% from the same period last year, but still above the forecast of $6.25 billion.
Insights from Kraft Heinz’s Q2 Results
In the second quarter, Kraft’s gross profit margin declined by 100 basis points to 34.4%. At the same time, operating income showed a loss of $8.0 billion, mainly due to non-cash impairment charges totaling $9.3 billion.
The company’s second-quarter performance was mainly supported by steady demand for its pantry staples and condiments in the U.S. Moreover, CEO Carlos Abrams-Rivera stated that the company’s efforts to enhance its products and boost manufacturing capabilities showed positive results.
For the full year 2025, the company expects EPS between $2.51 and $2.67, in line with the average estimate of $2.59. However, it expects organic net sales to fall by 1.5% to 3.5%. Additionally, adjusted operating income, excluding currency effects, is projected to decline by 5% to 10%, while free cash flow is expected to stay roughly the same as last year.
Is Kraft Heinz a Buy or Sell?
According to TipRanks’ consensus, KHC stock has a Hold consensus rating based on 10 Holds, and two Sells assigned in the last three months. At $28.55, the average Kraft Heinz stock price target implies a 0.04% upside potential.
It is important to note here that these ratings could change following today’s earnings report.
