Caesars Entertainment misses Q2 earnings expectations, shares edge lower
Investing.com -- Kraft Heinz Co (NASDAQ:KHC) reported mixed first quarter results on Thursday, with earnings surpassing expectations but revenue falling short. The food giant’s shares slipped 1% following the announcement.
The company posted adjusted earnings per share of $0.62, beating the analyst estimate of $0.60. However, revenue for the quarter came in at $6 billion, slightly below the consensus estimate of $6.02 billion. Net sales decreased 6.4% YoY, while organic net sales fell 4.7%.
Kraft Heinz CEO Carlos Abrams-Rivera commented on the results, stating, "In today’s uncertain times, we are committed to controlling the controllables and making the necessary investments to deliver quality, taste, and value to our consumers through our beloved brands."
The company’s gross profit margin decreased 60 basis points to 34.4%, while adjusted gross profit margin fell 10 basis points to 34.4%. Operating income declined 8.1%, and adjusted operating income dropped 5.2%.
Looking ahead, Kraft Heinz provided guidance for the second quarter of 2025, projecting earnings per share between $2.51 and $2.67. This range encompasses the current analyst consensus of $2.67.
Abrams-Rivera acknowledged the challenging operating environment, saying, "As the operating environment remains volatile, we are lowering our full year outlook and expanding the range of our expectations to better reflect potential outcomes."
The company reported that year-to-date net cash provided by operating activities was $0.7 billion, down 6.6% YoY.
Free cash flow stood at $0.5 billion, up 1.0%, with free cash flow conversion increasing 9.0%.