Shares of food and beverage products provider Kraft Heinz (NASDAQ:KHC) are ticking higher in the pre-market session today after its third-quarter EPS of $0.72 came in ahead of expectations by $0.06. Revenue of $6.57 billion, though, missed the cut by $130 million.
During the quarter, KHC witnessed growth across its core areas of Foodservice, Emerging Markets, and U.S. Retail. Further, organic sales increased by 1.7%, aided by 7.1% higher prices. These higher prices helped the company offset a 5.4% decline in volume/mix.
For Fiscal year 2023, Kraft Heinz expects organic net sales growth of 4% to 6% and expects adjusted EBITDA in constant currency terms to increase in the range of 5% to 7%. Notably, the company projects its adjusted gross margin to expand within the range of 200 to 250 basis points, compared to the previous outlook of 150 to 200 basis points.
Adjusted EPS for the year is seen landing between $2.91 and $2.99, compared to the prior expected range of $2.83 to $2.91. Additionally, Kraft Heinz has declared a quarterly dividend of $0.40 per share. The KHC dividend is payable on December 29 to investors of record on December 1.
What Is the Future of KHC Stock?
Overall, the Street has a Moderate Buy consensus rating on Kraft Heinz. After a nearly 18% price decline over the past year, the average KHC price target of $37.53 implies a 19.3% potential upside.
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