Kraft Heinz Co (NASDAQ: KHC), the food giant based in Pittsburgh, recently posted their financial results for the third quarter, with profit beating forecasts but revenues being weaker than expected. The stock remained flat, but on a YTD basis the shares have advanced by 18.54%, compared to the benchmark S&P 500’s gains of 2.45%.
In a press release, Bernardo Hees, the Chief Executive Officer of the company, explained that the results they achieved in Q3 were a good reflection of the company’s position. Though their financial performance was decent, it’s clear that they can still make improvements in retail execution and product offerings in a number of important markets, as well as taking brands to places where they aren’t competing at the moment. The goal is to generate strong results for the end of 2016 and to prepare for more powerful and profitable expansion in 2017.
Thus, the company achieved earnings per share of $0.83 during the third quarter, which was higher by $0.09 than the $0.74 that Wall Street was banking on. Revenues slightly missed the analyst predictions of $6.3 billion, coming in at a $6.27 billion. However, this figure was higher by 2.4% than the same timeframe of the previous year.
Kraft Heinz explained that their food product prices declined by 0.7 percentage points, as they affected by deflation of key commodities in the US, mostly coffee and meats. The volume/mix declined by 0.3 percentage points because of a decrease in deliveries in a number of categories in the US, including nuts, cold cuts and foodservice.
Charter Communications (NASDAQ: CHTR), the cable TV and internet provider based in Stamford, CT, recently posted their Q3 financial results, and achieved the exact opposite of Kraft Heinz, namely their profit missed estimates but their revenues came in higher than expected.
Like Kraft Heinz, their shares remained flat, but on a YTD basis saw gains of 11.21 percent, compared to the SIP 500’s increase of 2.35% for the same timeframe.
Tom Rutledge, the CEO and Chairman of the company, stated in a press release that their objective is to be a top service provider, which is why they offer excellent quality products and services at reasonable prices, which has let them expand their relationships with business and residential customers.
Bright House Network and Time Warner Cable integration is moving forward as planned, while they have started the implementation of the Spectrum brand. The latter offers improved packaging, products and prices.
It will take time to improve service operations in a way that will make Spectrum synonymous with the best provider of services in customer’s minds, but he feels that their operating initiatives will be effective for shareholders, customers, employees and the communities where they offer their services.
Thus, the company posted earnings per share of $0.69, which was significantly lower than the $0.79 expected by Wall Streets. On the other hand, revenues hit $10.04 billion, which was 7.4% higher than the same timeframe of the previous year. The figure was slightly higher than the $10.01 billion Wall Street predicted.
Charter, Bright House Networks and Time Warner Cable combined into one massive provider of internet and cable TV services, which occurred in May of this year.