Core Insights - The Kraft Heinz Company (KHC) reported third-quarter 2024 results with adjusted earnings of 75 cents per share, exceeding the Zacks Consensus Estimate of 74 cents, while net sales were $6,383 million, down 2.8% year over year and missing the consensus estimate of $6,407 million [3][4]. Sales Performance - Sales in key growth areas, Global Away From Home and Emerging Markets, met expectations, but the U.S. Retail division is expected to recover gradually due to ongoing pressures in certain categories [2]. - Organic net sales fell 2.2% year over year, with pricing up 1.2 percentage points, but volume/mix dropped 3.4 percentage points [4][5]. Financial Metrics - Adjusted gross profit was $2,189 million, with an adjusted gross margin of 34.3%, an increase of 30 basis points year over year [6]. - Adjusted operating income rose 1.4% to $1,330 million, driven by higher pricing and efficiency gains, despite challenges from volume/mix and manufacturing costs [7]. Segment Performance - North America: Net sales of $4,826 million, down 3.4% year over year, with organic sales declining 3.2% [8]. - International Developed Markets: Net sales of $882 million, down 0.2% year over year, with organic sales down 1.8% [8]. - Emerging Markets: Net sales of $675 million, down 2.4% year over year, but organic sales increased by 4.9% [9]. Cash Flow and Shareholder Returns - The company ended the quarter with cash and cash equivalents of $1,284 million and long-term debt of $19,383 million, with net cash provided by operating activities at $2.8 billion year-to-date [10]. - Kraft Heinz paid cash dividends of $1.5 billion and conducted share buybacks worth $538 million during the year-to-date period [11]. Future Outlook - For 2024, Kraft Heinz expects organic net sales growth to be at the lower end of the previous guidance range of 2% to flat year over year, with adjusted operating income growth also projected at the lower end of 1-3% [12]. - The adjusted EPS for 2024 is now anticipated to be in the lower end of the range of $3.01-$3.07, reflecting a growth of 1-3% [13].

Core Insights - Kraft Heinz reported revenue of $6.38 billion for the quarter ended September 2024, a decrease of 2.9% year-over-year, with EPS at $0.75, up from $0.72 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $6.41 billion, resulting in a surprise of -0.38%, while the EPS exceeded the consensus estimate of $0.74 by 1.35% [1] Revenue Performance - International net revenues were reported at $882 million, slightly above the average estimate of $869.96 million, but showed a significant year-over-year decline of 44% [3] - North America net revenues were $4.83 billion, below the estimated $4.86 billion, reflecting a year-over-year decrease of 3.4% [3] - Emerging Markets net sales reached $675 million, compared to the average estimate of $713.72 million [3] Stock Performance - Over the past month, Kraft Heinz shares have returned -1.1%, contrasting with the Zacks S&P 500 composite's increase of +1.8% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Group 1: Earnings Performance - Kraft Heinz reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and up from $0.72 per share a year ago [1] - The earnings surprise for this quarter was 1.35%, following a previous quarter where the company had a surprise of 6.85% by reporting $0.78 per share against an expectation of $0.73 [2] - Over the last four quarters, Kraft Heinz has consistently surpassed consensus EPS estimates [2] Group 2: Revenue Performance - The company posted revenues of $6.38 billion for the quarter ended September 2024, which was below the Zacks Consensus Estimate by 0.38% and down from $6.57 billion year-over-year [3] - Kraft Heinz has not been able to beat consensus revenue estimates over the last four quarters [3] Group 3: Stock Performance and Outlook - Kraft Heinz shares have declined approximately 5.9% since the beginning of the year, contrasting with the S&P 500's gain of 22.3% [4] - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $6.81 billion, and for the current fiscal year, it is $3.01 on revenues of $26.11 billion [8] - The estimate revisions trend for Kraft Heinz is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] Group 4: Industry Context - The Food - Miscellaneous industry, to which Kraft Heinz belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable industry outlook [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Kraft Heinz's stock performance [6]

Group 1: Warren Buffett's Investment Strategy - Warren Buffett is recognized for selecting stocks with long-term growth potential, focusing on those with competitive advantages [1] - Buffett's portfolio consistently outperforms the market, making his stock picks a solid foundation for any investment portfolio [1] Group 2: Occidental Petroleum (OXY) - Occidental Petroleum is Buffett's second-largest energy holding and sixth-largest overall position, indicating strong confidence in its long-term potential [2] - Currently trading at $51.61, OXY is near its 2.5-year lows, presenting an attractive entry point for investors [3] - Berkshire Hathaway holds 255.28 million shares of OXY, valued at approximately $16 billion, which constitutes 5.75% of its portfolio [3] - OXY's trailing P/E ratio is 13.33, and its forward P/E ratio is 17.41, highlighting its undervalued status in the energy sector [3] - Over the past year, OXY's price has decreased by 17.51%, providing a potential entry point for energy market investors [3] - Occidental exceeded production targets by producing an additional 6,000 barrels per day in Q2, and its recent $12 billion acquisition of CrownRock enhances its capacity to benefit from a rebound in oil prices [4] - The company's investment in carbon capture technology aligns with global environmental goals, positioning it for long-term value creation [4] Group 3: Kraft Heinz (KHC) - Kraft Heinz is a core holding in Buffett's portfolio, with 325.63 million shares valued at $10.49 billion, making up 3.75% of his investments [5] - Currently trading at $34.74, Kraft Heinz has delivered a total return of only 8.3% over the past three years, underperforming the S&P 500's 38% total return [5] - Kraft Heinz's forward P/E ratio is 11.29, and its PEG ratio is 3.69, indicating it is undervalued compared to competitors in the consumer staples sector [5] - The stock is trading significantly below its initial 2015 opening price of $71 and its 2017 peak, suggesting a potential turnaround opportunity [5] - Despite challenges such as multiple contractions and concerns over GLP-1 weight loss drugs, Kraft Heinz generated $12.9 billion in revenue in the first half of 2024, showcasing its brand appeal [6] - The company offers a 4.61% dividend yield, making it attractive for dividend-focused investors [6] - Buffett's endorsement of these stocks suggests they are undervalued opportunities for investors seeking a value-driven strategy [6]

Core Insights - Kraft Heinz (KHC) is expected to report quarterly earnings of $0.74 per share, reflecting a 2.8% increase year-over-year, while revenues are forecasted at $6.42 billion, indicating a 2.3% decline compared to the previous year [1] - Analysts have revised their consensus EPS estimate upward by 0.1% over the past 30 days, suggesting a collective reassessment of projections [1] - The correlation between earnings estimate revisions and short-term stock price performance is highlighted as a significant indicator for investor actions [1] Revenue Estimates - Analysts project 'Net Revenues- International' to reach $868.71 million, showing a substantial year-over-year decline of 44.8% [2] - 'Net Revenues- North America' is estimated at $4.88 billion, reflecting a decrease of 2.4% from the same quarter last year [2] EBITDA Estimates - 'Segment Adjusted EBITDA- North America' is expected to be $1.22 billion, down from $1.39 billion reported in the same quarter of the previous year [2] - 'Segment Adjusted EBITDA- International' is anticipated to be $124.16 million, a significant drop from $259 million reported in the same quarter last year [3] Stock Performance - Kraft Heinz shares have seen a change of +0.7% over the past month, compared to a +1.4% increase in the Zacks S&P 500 composite [3] - With a Zacks Rank of 4 (Sell), KHC is projected to underperform the overall market in the near future [3]

The Kraft Heinz Company (KHC) is likely to register a top-line decline when it reports third-quarter 2024 earnings on Oct. 30. The Zacks Consensus Estimate for revenues is pegged at $6.43 billion, suggesting a decrease of 2.2% from the prior-year quarter’s reported figure. However, the bottom line is likely to have increased year over year. The consensus mark for third-quarter earnings has remained unchanged in the past 30 days at 74 cents per share, indicating a rise of 2.8% from the figure reported in the ...

Group 1 - The article emphasizes the importance of investing in income-producing asset classes for sustainable portfolio income, diversification, and inflation hedging [1] - It highlights the strategy of buying and holding companies with strong household brands, referencing Warren Buffett's investment approach with Berkshire Hathaway [1] - The focus is on defensive stocks with a medium- to long-term investment horizon, appealing to risk-averse investors [1] Group 2 - The article does not provide specific financial data or performance metrics related to any companies or industries [2][3]

Core Viewpoint - Following the Federal Reserve's 50-basis-point rate cut, markets have reached new all-time highs, prompting investors to consider rebalancing their portfolios towards dividend-paying stocks, particularly Kraft Heinz and AT&T, which offer high yields and potential upside [1]. Group 1: Kraft Heinz - Kraft Heinz has a dividend yield of 4.52% with an annual payout of $1.60, making it attractive for income-seeking investors despite a year-to-date decline of 4% [1][2]. - The stock's technical indicators show signs of recovery, having reclaimed its 20- and 50-day simple moving averages and nearing the critical 200-day SMA, which could signal a bullish trend if surpassed [1]. - Kraft Heinz has a forward price-to-earnings (P/E) ratio of 11.19, with six out of eleven analysts rating it as a Buy, projecting a potential upside of 6.18% [2]. - Upcoming earnings on October 30 are crucial, as the company previously reported earnings per share of $0.78, beating estimates by $0.05 [3]. - Warren Buffett's Berkshire Hathaway holds a 26.9% stake in Kraft Heinz, indicating long-term confidence, and the company is focusing on innovation with new product introductions [4]. Group 2: AT&T - AT&T offers a high dividend yield of 5.22% with an annual dividend of $1.11, and the next payment is scheduled for November 1 [5][6]. - The stock has increased nearly 27% year-to-date, outperforming the S&P 500, but recently pulled back about 5% from its 52-week highs, presenting a potential buying opportunity [5]. - Analysts have assigned a Moderate Buy rating to AT&T, with a nearly 7% forecasted upside, and Wells Fargo raised its price target from $22 to $25, implying a 17% potential upside [6]. - The company is set to release its next earnings report on October 23, having met expectations with earnings of $0.57 per share on $29.8 billion in revenue in the last quarter [7]. - AT&T's strong dividend and financial performance make it an attractive defensive play in a declining rate environment, providing both stability and growth potential [8]. Group 3: Portfolio Strategy - Both Kraft Heinz and AT&T present compelling opportunities for investors looking to diversify into high-yield stocks as interest rates decline, with Kraft Heinz showing value play potential and AT&T demonstrating solid momentum [9].

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Company Summaries Walgreens Boots Alliance, Inc. (WBA) - Dividend Yield: 11.49% - UBS analyst Kevin Caliendo maintained a Neutral rating and reduced the price target from $17 to $12 [3] - RBC Capital analyst Ben Hendrix maintained a Sector Perform rating and cut the price target from $22 to $13 [3] - Recent News: On Sept. 13, WBA agreed to pay $106.8 million to settle allegations of submitting false claims to government healthcare programs [3] The Kraft Heinz Company (KHC) - Dividend Yield: 4.66% - Wells Fargo analyst Chris Carey maintained an Equal-Weight rating and raised the price target from $34 to $35 [4] - B of A Securities analyst Bryan Spillane maintained a Buy rating and lowered the price target from $42 to $38 [4] - Recent News: On July 31, KHC reported better-than-expected second-quarter adjusted EPS results [4] Philip Morris International Inc. (PM) - Dividend Yield: 4.52% - Goldman Sachs analyst Bonnie Herzog maintained a Buy rating and increased the price target from $126 to $140 [5] - Barclays analyst Gaurav Jain maintained an Overweight rating and raised the price target from $130 to $145 [5] - Recent News: PM is expected to report results for its fiscal third quarter on Oct. 22 [5]

The Kraft Heinz Company (KHC) is demonstrating resilience in a tough economic landscape thanks to its effective pricing strategies. In second-quarter 2024, KHC reported an adjusted gross profit of $2,296 million, up 2.5% year over year. The upside highlights the company's ability to maintain robust profit margins, even as inflationary pressures persist. With its adjusted gross margin expanding 210 basis points (bps) to 35.5%, the company is proving that it can navigate a challenging consumer environment whi ...