Categories AlphaGraphs, Earnings, Retail

Kraft Heinz stock tumbles after missing Q4 estimates and disclosing about SEC subpoena

Kraft Heinz (KHC), which usually issues the earnings release at 4:05 PM ET, delayed its earnings announcement today and reported the results at 5:01 PM ET. KHC stock plunged about 9% during the after-hours as the company missed Q4 earnings and revenue estimates as well as it disclosed about the SEC investigation.

The company reported Q4 earnings of 84 cents per share, representing a year-over-year decrease of 6.7% on revenue of $6.89 billion, representing a growth of 0.7%. The Street expected the maker of Jell-O pudding to earn 94 cents a share on revenue of $6.95 billion.

Kraft Heinz also revealed that SEC had sent a subpoena to the company in October 2018 associated with an investigation into the company’s accounting policies. Following this initial SEC document request, the company together with external counsel launched an investigation. As a result of the findings, Kraft Heinz recorded a $25 million increase to costs of products sold as an out of period correction.

Kraft Heinz also stated that the company is in the process of implementing certain improvements to its internal controls to mitigate the likelihood of this occurring in the future and has taken other remedial measures and it continues to cooperate fully with the SEC.

Kraft Heinz Q4 2018 earnings infograph

On a GAAP basis, net loss was $12.6 billion or $10.34 per share compared to an income of $8 billion or $6.52 per share in the prior-year quarter. Kraft Heinz recorded non-cash impairment charges of $15.4 billion in the recently concluded quarter to lower the carrying amount of goodwill in certain reporting units, primarily U.S. Refrigerated and Canada Retail, and certain intangible assets.

CEO Bernardo Hees commented that the profitability fell short of the company’s expectations due to a combination of unanticipated cost inflation and lower-than-planned savings.

Meanwhile, Domino’s Pizza (DPZ) reported results for its fourth quarter before the bell today. Domino’s shares plunged about 9% today as the company failed to meet the Street’s earnings and revenue expectations.

KHC stock, which plunged to a yearly low ($41.60) on December 26, 2018, ended Thursday’s regular trading session down 0.17% at $48.18.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text

 

 

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top