HJ Heinz Quarterly Earnings Sneak Peek

S&P 500 (NYSE:SPY) component HJ Heinz (NYSE:HNZ) will unveil its latest earnings on Wednesday, August 29, 2012. HJ Heinz manufactures food products, including ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products.

HJ Heinz Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 80 cents per share, a rise of 2.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 82 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 80 cents during the last month. For the year, analysts are projecting profit of $3.52 per share, a rise of 5.1% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 81 cents per share against a mean estimate of profit of 79 cents per share.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 21.7% to $175.3 million (54 cents a share) from $223.9 million (69 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 5.6% to $3.05 billion from $2.89 billion.

Stock Price Performance: Between June 27, 2012 and August 27, 2012, the stock price had risen $3.51 (6.63%), from $52.95 to $56.46. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 19, 2012, when shares rose for seven straight days, increasing 3.4% (+$1.81) over that span. It saw one of its worst periods between August 3, 2012 and August 10, 2012 when shares fell for six straight days, dropping 0.9% (-48 cents) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.47 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14.9% in the first quarter of the last fiscal year, 8.3% in the second quarter of the last fiscal year and 7.2% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 4% in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With seven analysts rating the stock as a buy, one rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

Wall St. Revenue Expectations: On average, analysts predict $2.84 billion in revenue this quarter, a decline of 0.4% from the year-ago quarter. Analysts are forecasting total revenue of $11.82 billion for the year, a rise of 1.5% from last year’s revenue of $11.65 billion.

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

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