H. J. Heinz Company Earnings: Profitable Quarter Accelerates Growth

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S&P 500 (NYSE:SPY) component H. J. Heinz Company (NYSE:HNZ) reported a profit boost in the second quarter. HJ Heinz manufactures food products, including ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products.

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H. J. Heinz Company Earnings Cheat Sheet

Results: Net income for H. J. Heinz Company rose to $289.4 million (90 cents per share) vs. $237 million (73 cents per share) in the same quarter a year earlier. This marks a rise of 22.1% from the year-earlier quarter.

Revenue: Rose 0.5% to $2.83 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: H. J. Heinz Company beat the mean analyst estimate of 88 cents per share. It fell short of the average revenue estimate of $3.07 billion.

Quoting Management: “Heinz delivered solid results while making significant investments in our businesses and brands to drive growth,” said Chairman, President and CEO William R. Johnson. “Notably, Heinz delivered its 30th consecutive quarter of organic sales growth, led by our trio of growth engines: Emerging Markets, Global Ketchup and the Company’s Top 15 Brands.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by 10 cents in the third quarter of the last fiscal year.

Net income has increased 2.6% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 22.1% from the year-earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 99 cents per share to 93 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate hasn’t changed from $3.52 per share for the fiscal year.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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