H.J. Heinz Company Third Quarter Earnings Sneak Peek

The Cheat Sheet

S&P 500 component H.J. Heinz Company will unveil its latest earnings on Friday, February 17, 2012. HJ Heinz manufactures food products, including ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products.

H.J. Heinz Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 85 cents per share, a rise of 1.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 90 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 86 cents during the last month. Analysts are projecting profit to rise by 8.1% versus last year to $3.33.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting profit of 81 cents per share, and the previous quarter, it had net income of 78 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 6.3% in revenue from the year-earlier quarter to $2.89 billion.

Analyst Ratings: Analysts are high on the stock, with eight analysts rating it as a buy, none rating it as a sell and seven rating it as a hold.

A Look Back: In the second quarter, profit fell 5.7% to $237 million (73 cents a share) from $251.4 million (78 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 8.3% to $2.83 billion from $2.61 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 14.9% in the first quarter from the year earlier, climbed 6% in the fourth quarter of the last fiscal year from the year-ago quarter and 1.5% in the third quarter of the last fiscal year.

In each of the last two quarters, the company’s net income has fallen. Net income dropped 6% in the first quarter.

Stock Price Performance: Between November 15, 2011 and February 13, 2012, the stock price fell $1.26 (-2.4%), from $53.29 to $52.03. The stock price saw one of its best stretches over the last year between December 19, 2011 and December 27, 2011, when shares rose for six straight days, increasing 3.6% (+$1.89) over that span. It saw one of its worst periods between December 29, 2011 and January 6, 2012 when shares fell for six straight days, dropping 2.4% (-$1.29) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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