The Kraft Heinz Company (NASDAQ:KHC) Just Released Its First-Quarter Earnings: Here's What Analysts Think

The Kraft Heinz Company (NASDAQ:KHC) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of US$6.0b and statutory earnings per share of US$0.59 both in line with analyst estimates, showing that Kraft Heinz is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 2 warning signs about Kraft Heinz. View them for free.

Taking into account the latest results, Kraft Heinz's 17 analysts currently expect revenues in 2025 to be US$25.1b, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 17% to US$2.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$25.0b and earnings per share (EPS) of US$2.72 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for Kraft Heinz

The consensus price target held steady at US$31.72, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Kraft Heinz at US$56.91 per share, while the most bearish prices it at US$26.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.9% by the end of 2025. This indicates a significant reduction from annual growth of 0.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.1% annually for the foreseeable future. It's pretty clear that Kraft Heinz's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kraft Heinz. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Kraft Heinz. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Kraft Heinz going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Kraft Heinz that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.