Kraft Heinz and Natera Up – The Motley Fool

Today's headlines include the food and beverage giant Kraft Heinz (NASDAQ: KHC) and health diagnostic and research society Natera (NASDAQ: NTRA).

1. The potential sale of one of Kraft Heinz's dairy brands has sparked investor optimism about management's plans to revitalize its business.
2. Natera's test growth generated higher than expected revenue in the fourth quarter.

Here is an overview of these stories and why their actions are on the rise.

Kraft Heinz

Food and beverage manufacturer Kraft Heinz has had a difficult time recently. Last month, actions were defeated following the company's earnings report. The quarterly update included worse-than-expected earnings and earnings per share, a dividend reduction announcement and a $ 15.4 billion write-down on two of its brands, Kraft and Oscar Mayer.

But the title begins to pause after business hours on Tuesday, following a report that the company plans to sell its Breakstone business, which sells dairy products like butter and sour cream. "Knowledgeable" sources told CNBC that the activity could be valued at $ 400 million at a sale. "It could appeal to dairy companies like Dean Foods (NYSE: DF), Saputo, or the national dairy cooperative Dairy Farmers of America, said one of the people, "wrote Lauren Hirsch of CNBC.

It is important to note that CNBC reports that Kraft's decision to sell its Breakstone business is "part of a broader review of the company's dairy business, which also includes its natural cheese business," said the public. .

The sale of some of its brands could help the company repay part of its debt. Long-term debt increased from $ 28.3 billion at the end of 2017 to $ 30.9 billion at the end of 2018. This would strengthen the company's revitalized efforts to strengthen its balance sheet, which began with the recent reduction of the company's dividend.

The Kraft Heinz stock is up 0.6% after 7:30. EDT.

Natera

Natera, a company that provides pre-conception and prenatal genetic testing services, saw equities rise sharply after trading hours on Tuesday.

Optimism rose after the company's strong fourth quarter results. Revenues for the quarter jumped 29% from a year earlier to $ 67 million as the company processed 174,200 tests. Overall, testing increased by 26% over the previous year and tests processed through the company's software platform, Constellation, increased 28% over the previous year to 10 400.

Natera's fourth quarter revenues were well above the consensus estimate of analysts, which stood at $ 62.9 million.

Significantly, Natera's operating loss increased from $ 46.6 million in the fourth quarter of 2017 to $ 29.7 million in the fourth quarter of 2018.

The stock rose more than 7% after trading hours Tuesday at 19:30. EDT.

Daniel Sparks has no position in the mentioned actions. The Motley Fool has no position in any of the actions mentioned. Motley Fool has a disclosure policy.