H. J. Heinz Earnings: Margins and Costs Squeeze
S&P 500 (NYSE:SPY) component H. J. Heinz Company (NYSE:HNZ) reported its results for the fourth 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 fell to $177.6 million (55 cents per share) vs. $223.9 million (70 cents per share) a year earlier. This is a decline of 20.7% from the year-earlier quarter.
Revenue: Rose 5.6% to $3.05 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: H. J. Heinz Company reported adjusted net income of 81 cents per share. By that measure, the company beat the mean estimate of 79 cents per share. Analysts were expecting revenue of $3.07 billion.
Quoting Management: Heinz Chairman, President and CEO William R. Johnson said: “Heinz delivered strong fourth-quarter results led by our trio of growth engines – Emerging Markets, Global Ketchup and our Top 15 Brands. Excluding special charges, Heinz grew earnings per share by more than 17% and we delivered our 28th consecutive quarter of organic sales growth, supported by increased investments in marketing, productivity and Emerging Markets capabilities.”
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 10 cents in the third quarter, by one cent in the second quarter, and by 2 cents in the first quarter.
Revenue has risen for the last four quarters. Revenue increased 7.2% to $2.92 billion in the third quarter. The figure rose 8.3% in the second quarter from the year earlier and climbed 14.9% in the first quarter from the year-ago quarter.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 83 cents a share to 82 cents over the last thirty days. For the fiscal year, the average estimate has moved down from $3.34 a share to $3.33 over the last thirty days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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