H.J. Heinz Beats Analyst Estimates on EPS

8/31/12

Courtesy of Motley Fool


H.J. Heinz (NYSE: HNZ  ) reported earnings on Aug. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 29 (Q1), H.J. Heinz missed slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share increased.

Margins increased across the board.

Revenue details
H.J. Heinz tallied revenue of $2.79 billion. The 12 analysts polled by S&P Capital IQ wanted to see sales of $2.84 billion on the same basis. GAAP reported sales were 2.0% lower than the prior-year quarter's $2.85 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.87. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.81 per share. GAAP EPS of $0.80 for Q1 were 14% higher than the prior-year quarter's $0.70 per share.


Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.9%, 20 basis points better than the prior-year quarter. Operating margin was 14.7%, 30 basis points better than the prior-year quarter. Net margin was 9.2%, 130 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.87 billion. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $11.80 billion. The average EPS estimate is $3.52.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 830 members out of 877 rating the stock outperform, and 47 members rating it underperform. Among 268 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 260 give H. J. Heinz a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on H.J. Heinz is outperform, with an average price target of $56.12.

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