Kraft Heinz Earnings: KHC Stock Plummets on SEC Investigation
Kraft Heinz (NASDAQ:KHC) announced its latest quarterly earnings results after hours on Thursday, but a subpoena from the Securities and Exchange Commission (SEC) was the hot topic relating to the company on the day.
The food and beverage company is now being investigated by the agency in relation to its account policies–the subpoena was reportedly sent the company’s way in October. The company responded by saying it is investigating the matter internally following the subpoena.
The move pushed Kraft Heinz to report a $25 million increase to the cost of its products sold, noting that it was “immaterial to the fourth quarter of 2018 and its previously reported 2018 and 2017 interim and year to date periods.” The company added that it is cooperating with the SEC entirely, while also switching up the way it conducts its internal procedures to avoid future issues such as this one.
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As far as earnings are concerned, for the Chicago-based company’s fourth quarter of its fiscal 2018, it posted earnings of 84 cents per share on an adjusted basis, missing the 94 cents per share that Wall Street was calling for, according to data compiled by Refinitiv.
Revenue was closer to the mark at $6.89 billion, but it was still a touch below the $6.93 billion that the Refinitiv guidance projected.
KHC stock experienced a decline of more than 16% after the bell following the SEC investigation news and the company’s earnings miss. Shares had fallen about 0.2% throughout regular trading on Thursday in anticipation of its results.
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