Kraft Heinz (NASDAQ: KHC) on Thursday reported quarterly earnings that topped analysts’ expectations.
Shares in the company, which has a market value of $34.8 billion, are down by about 33% so far this year, as of Wednesday’s close. They opened Thursday trade up $2.35, or 8.3%, to $30.85
Said CEO Miguel Patricio, "While our third-quarter results remain below our potential, we showed sequential improvement versus the first half, and I believe we are beginning to operate the business better.
"We are making good progress in identifying and addressing the root causes of past performance, as well as setting our strategic direction."
Earnings per share were 69 cents, adjusted, compared with 54 cents expected. Revenue, on the other hand, fell a bit short of expectations, $6.08 billion vs. $6.13 billion expected
Kraft Heinz reported fiscal third-quarter net income of $899 million, or 74 cents per share, up from $619 million, or 50 cents per share, a year earlier.
In August, Kraft Heinz withdrew its full-year 2019 forecast after reporting weak second-quarter results.
Net sales during its third quarter dropped 4.8% to $6.08 billion, missing expectations of $6.13 billion.
In the United States, which accounts for roughly 70% of Kraft Heinz’s revenue, demand for its products continued to decline. Despite price hikes on items like Oscar Mayer cold cuts, Philadelphia cream cheese and Lunchables, net sales for the company’s home market shrank by 1.6%.
