Packaged food products maker HJ Heinz Co. (HNZ) is slated to release its second-quarter earnings results before the market opens Tuesday.
On average, 13 analysts surveyed by Thomson Reuters expect the company to post earnings of $0.70 per share for the quarter, with estimates ranging between $0.66 and $0.73 per share. Analysts' estimates typically exclude special items. Revenues for the quarter are estimated to be $2.63 billion, representing a 0.6% rise from last year.
In the same quarter a year ago, the Pittsburgh, Pennsylvania-based maker of ketchup, sauces and soup had recorded net income of $276.71 million or $0.87 per share, on revenues of $2.61 billion.
Founded in 1869, Heinz manufactures and markets healthy, convenient and affordable foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. The company has operations in North America, Africa, Latin America, Europe, the Asia Pacific, and the Middle East.
Like most packaged food companies, the economic downturn has benefited Heinz as consumers started eating at home more often than going to restaurants to save money. However, the company's profitability is challenged by fluctuating price of ingredients as well as stronger dollar as it does much of its business overseas.
While announcing the first-quarter results back in August, William Johnson, Heinz Chairman, President and Chief Executive Officer, stated, "Heinz continues to invest in marketing and innovation despite this difficult economy. At the same time, we have refrained from chasing unprofitable volume."
Heinz also reaffirmed then its fiscal 2010 forecast, and said it continues to expect earnings per share growth in a range of 5% to 8%, sales growth of 4% to 6% on a constant currency basis, and growth in operating income of 6 to 8%. Analysts expect the company to report earnings of $2.75 per share for the fiscal 2010, lower than prior year's $2.90 per share, while revenues are projected to be $10.44 billion, representing a 2.9% growth from last year's $10.15 billion.
In its preceding first quarter, Heinz had reported net income of $212.56 million or $0.67 per share, down from prior-year's $228.96 million or $0.72 per share, as unfavorable currency effects drove down sales to $2.47 billion from $2.58 billion in the previous year. The impact of currency reduced quarterly sales by 9% and both net income and earnings per share by 17%. On a constant currency basis, Heinz achieved 4.5% sales growth. Heinz also said it was the 17th consecutive quarter of organic sales growth.
Johnson then said, "Led by strong organic sales growth in Emerging Markets, our sharply focused global portfolio of leading brands performed well, especially in our core categories of Ketchup and Sauces and Infant/Nutrition, even as the recession continued to impact consumer behavior. At the same time, Heinz delivered robust cash flow, reflecting our strong focus on working capital and in particular on reducing inventory."
On November 11, Heinz' Board declared a quarterly dividend of $0.42 per share on the company's 25-cent par value common stock payable on January 10, 2010 to shareholders of record at the close of business on December 22, 2009. Heinz Board also declared dividend of 42.5 cents per share on the company's third cumulative preferred stock, $1.70 First Series, payable January 1, 2010 to shareholders of record at the close of business on December 22, 2009.
Among peers, Campbell Soup Co. (CPB), the world's largest soup maker, reported Monday higher profit for the first quarter, reflecting improved gross margins as well as lower costs and expenses. The Camden, New Jersey-based company's first-quarter net income was $304 million or $0.87 per share, compared to $260 million or $0.70 per share in the year-ago quarter. On an adjusted basis, net income advanced 8% to $304 million from $281 million in the previous year, and adjusted earnings per share grew 14% to $0.87 from $0.76 last year. Meanwhile, net sales declined 2% to $2.20 billion from $2.25 billion in the previous year.
In late September, packaged foods company ConAgra Foods, Inc. (CAG) reported a 63% plunge in profit for the first quarter, mainly on the absence of prior year's divestiture gain. The Omaha, Nebraska-based company's net income was $165.9 million or $0.37 per share, lower than $442.4 million or $0.94 per share in the prior year. Income from continuing operations increased to $166.5 million or $0.37 per share from $107.6 million or $0.23 per share in the comparable quarter a year ago. Excluding certain items, adjusted earnings from continuing operations rose 41% to $0.38 per share from $0.27 per share in the year-ago quarter. Net sales decreased 3.1% to $2.96 billion from $3.06 billion last year
Minneapolis, Minnesota-based packaged food supplier General Mills Inc. (GIS) in September posted a profit for the first quarter of $420.6 million or $1.25 per share, higher than $278.5 million or $0.79 per share last year, benefited by strong U.S. retail sales and low commodity and fuel costs. Excluding mark-to-market impact, earnings per share amounted to $1.28, an increase of 33% from $0.96 a year ago. The Minneapolis, Minnesota-based company's net sales improved 0.6% to $3.52 billion from the previous year's $3.49 billion.
HNZ closed Monday's regular trading session at $43.17, up $0.94 or 2.23%, on a volume of 4.13 million shares. In the past 52 weeks, shares have been trading between $30.51 and $43.44, on a volume of 2.4 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.