Kraft Heinz Raises Q2 Dividend As Earnings Helped by Cost Cuts Amid Weak U.S. Sales
Aug, 04th 05:07
Shares of Kraft Heinz Co added more than 1% in after-market trading on Thursday after the food giant reported sales missed forecasts but adjusted earnings above Wall Street expectations.
Kraft Heinz’s shares edged 1.14% higher to trade at $87.50 in extended session after the food and beverage conglomerate posted net income of 1.16 billion, or 94 cents per share, in the latest quarter. This marked a rise of 50.5 percent compared with $770 million, or 63 cents a share, in the year-ago quarter.
Excluding certain items, the Chicago, Illinois – based company earned 98 cents a share in the quarter, up from 85 cents a share a year ago and 3 cents ahead of analysts’ average estimate.
Due to a decline in U.S. sales, which account for more than two-thirds of Kraft’s total revenue, the company’s revenue dropped 1.7 percent to $6.68 billion from $6.79 billion a year ago and missed analysts’ average estimate of $6.73 billion.
However, Kraft Heinz raised quarterly dividend to 62.5 cents a share from the prior quarterly dividend rate of 60 cents a share as the company kept a tight leash on costs. Selling, general and administrative expenses were reported to plunged by 15 percent to $760 million in the second quarter ended July 1.
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