The Kraft Heinz Company KHC is likely to register a decline in both top and bottom lines when it reports first-quarter 2025 earnings on April 29. The Zacks Consensus Estimate for revenues is pegged at $6 billion, indicating a 6.5% decline from the prior-year quarter’s reported figure. The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 60 cents per share, projecting a decline of 13% from the figure reported in the year-ago quarter. KHC has a trailing four-quarter earnings surprise of 4.3%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Kraft Heinz Company Price and EPS Surprise

Kraft Heinz Company price-eps-surprise | Kraft Heinz Company Quote

Things to Know About KHC’s Upcoming Results

Kraft Heinz has been facing headwinds in its volume performance, which is exerting pressure on its top-line growth. The company is grappling with evolving consumer behavior influenced by ongoing economic uncertainty, alongside weakness in the U.S. Away from Home segment. These persistent challenges pose a threat to Kraft Heinz’s organic sales, ultimately impacting overall revenues.

Our model suggests a 4.6 percentage point year-over-year decline in volume/mix for the first quarter of 2025. As a result, we project a 4.1 percentage point drop in organic net sales during the same period.

In addition to weak volume trends, Kraft Heinz is also dealing with margin pressure. The downside can be attributed to unfavorable volume/mix shifts, rising manufacturing and procurement costs, and unfavorable foreign currency impacts. We expect the company’s adjusted gross margin to contract 30 basis points year over year, reaching 34.2% in the first quarter of fiscal 2025.

Earnings Whispers for KHC Stock

Our proven model doesn’t conclusively predict an earnings beat for Kraft Heinz this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Kraft Heinz currently carries a Zacks Rank #3 and has an Earnings ESP of -0.04%.

Stocks With the Favorable Combination

Here are some companies which, according to our model, have the right combination of elements to beat on earnings this time around.

Sprouts Farmers Market, Inc. SFM currently has an Earnings ESP of +0.44% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

SFM's top line is anticipated to increase year over year when it reports first-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.19 billion, which implies 16.3% growth from the year-ago quarter’s reported figure.

The company is expected to register an increase in the bottom line. The consensus estimate for Sprouts Farmers’ first-quarter earnings is pegged at $1.53 per share, indicating 36.6% growth from the year-ago quarter. SFM has a trailing four-quarter earnings surprise of 15.1%, on average.

BJ's Wholesale Club Holdings, Inc. BJ has an Earnings ESP of +2.09% and currently carries a Zacks Rank of 2. BJ's top line is anticipated to advance year over year when it reports first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $5.18 billion, which indicates a 5.3% increase from the year-ago quarter’s reported figure.

The company is expected to register growth in the bottom line. The consensus estimate for BJ's Wholesale Club’s fiscal first-quarter earnings is pegged at 91 cents per share, implying an increase of 7.1% from the year-ago quarter. BJ has a trailing four-quarter earnings surprise of 12%, on average.

Freshpet FRPT currently has an Earnings ESP of +2.56% and a Zacks Rank of 3. The company is likely to register top-line growth and bottom-line decline when it reports first-quarter 2025 numbers. The Zacks Consensus Estimate for Freshpet’s quarterly revenues is pegged at $262.3 million, which indicates nearly 17.2% growth from the prior-year quarter.

The company is expected to register a decrease in the bottom line. The consensus estimate for Freshpet’s first-quarter earnings is pegged at 13 cents per share, indicating a 38.1% decrease from the year-ago quarter. FRPT has a trailing four-quarter earnings surprise of 78.8%, on average.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report

Freshpet, Inc. (FRPT) : Free Stock Analysis Report

Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report

Kraft Heinz Company (KHC) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research