Why Kraft Heinz Stock Is Higher Today (Despite Missing Sales Estimates)
Shares of food giant Kraft Heinz (NASDAQ: KHC) are up 4.4% as of 11:17 a.m. ET today, according to numbers from S&P Global Market Intelligence, even though the organization's second-quarter revenue fell short of expectations. Investors are impressed with the company's profitability, and hopeful that it will continue to improve as a result of efficiency-oriented initiatives.
For the three-month stretch ending in late June, food company Kraft Heinz turned a little less than $6.5 billion in revenue into adjusted operating income of just under $1.4 billion (or $0.78 per share). Both the top- and bottom lines were down slightly year over year, and sales fell short of analysts' expectations of $6.55 billion. But beating earnings estimates of $0.74 per share was enough to convince the bulls to jump on board.
See, a key part of Kraft Heinz's turnaround plan is becoming more cost-efficient. These efforts aren't yet complete, however. As CEO Carlos Abrams-Rivera explained of the company's Q2 results and revised guidance, "While we are now expecting a more gradual top-line improvement in the back half of the year, we continue to unlock efficiencies that are allowing us to make accretive investments in our brands, grow profits, and drive future sales growth."
Source Fool.com
