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Did Kraft Heinz’s Stock Climb after Its Fiscal 2Q16 Results?

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Stock reacted to earnings

On August 4, 2016, after markets closed, Kraft Heinz (KHC) reported its fiscal 2Q16 financial results ending July 3, 2016. Management discussed the fiscal 2Q16 performance during a conference call after the release. The stock rose 4% the next day and closed at $88.79. Its earnings beat estimates by 18% with a slight miss in revenue. The margins also grew.

As of August 8, the stock has risen 11% since its last earnings report on May 4. Since then, it has been on a rising trend. The company has gained 22% since it started trading as a combined company on July 6, 2015. So far, Kraft Heinz’s stock has risen by 22% in 2016. It outperformed the Market, represented by the S&P 500 Index, by 14% as of August 8. It closed at $88.75 on August 8.

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Peers in the industry

The company operates as a food and beverage company worldwide. It operates internationally through its subsidiaries. It’s part of the processed and packaged goods industry. Its headquarters are in Pittsburgh, Pennsylvania. It offers its products under brands including Kraft, Heinz, ABC, Capri Sun, and Classico. Its peers in the industry and their returns  in 2016 as of August 8 are as follows:

  • J.M. Smucker (SJM) has returned 26%.
  • Mondelez International (MDLZ) has returned -1%.
  • General Mills (GIS) has returned 23%.

J.M. Smucker, Mondelez, and General Mills closed at $154.47, $70.63, and $43.42 on August 8, respectively. The First Trust US IPO Index Fund (FPX) invests 9.1% of its portfolio in Kraft Heinz stock. The iShares Morningstar Large Value ETF (JKF) also invests 1.0% of its portfolio in Kraft Heinz.

What to look for in this series?

Continue reading this series to see how Kraft Heinz performed in fiscal 2Q16. What impacted its revenue in the quarter? We’ll discuss the company’s recent dividend increase and increased earnings. We’ll look at how the segments contributed to the performance. We’ll end the series with what Wall Street analysts recommend for the stock after the earnings release.

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