Kraft Heinz shares jump on sparkling profits and revenue in second quarter

Kraft Heinz Co (NASDAQ:KHC) posted beats on both profit and revenue on the back of higher sales that topped analyst estimates, sparking a rally in the shares of the maker of Philadelphia cream cheese, ketchup and roasted peanuts.

The company said second-quarter earnings per share hit US$1, exceeding the consensus estimate of US$0.92, while revenue reached US$6.7bn, topping the average estimate of US$6.59bn. Sales in the US, the company’s biggest market, declined 1.9% to US$4.51bn, but the number exceeded average estimates of US$4.4bn in US sales.

Shares of Kraft Heinz were the second biggest gainer in Nasdaq, rising 7.4% to US$63.81.

READ: Kraft Heinz sees first quarter profit fall, hurt by a strong dollar and weak demand in the US and Canada

The company issued optimistic guidance for the rest of the year and into 2019.

“We believe we are now in a position to drive sustainable top-line growth from a strong pipeline of new product, marketing and whitespace initiatives that are backed by investments in capabilities for brand and category advantage. And while cost inflation on many fronts has been holding back our bottom line, we expect our profitability to improve by year-end, with further momentum into 2019,” said Kraft Heinz Chief Executive Bernardo Hees.

Kraft Heinz is the fifth-largest food and beverage company in the world.

Widely followed billionaire investor Warren Buffett stepped down from the board of Kraft Heinz earlier this year.

Story by ProactiveInvestors