H. J. Heinz Company (HNZ) is scheduled to report its Q1 2013 results on August 29, 2012, before market opens. The street expects EPS and revenue of $0.80 and $2.84B, respectively.
In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from HNZ and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.81 EPS, beating analyst estimates of $0.79.
The consensus EPS estimate is $0.80 based on 16 analysts' estimates, up from $0.78 a year ago. Revenue estimates are $2.84B, down from $2.85B a year ago. The median target price by analysts for the stock is $56.00.
Average recommendation: Hold
- On June 5, 2012, The Coca-Cola Company, Ford Motor Company, H.J. Heinz Company, NIKE, Inc. and Procter & Gamble announced the formation of the Plant PET Technology Collaborative (PTC), a strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products.
- On May 24, 2012, H.J. Heinz Co announced that it expects organic sales growth of at least 4% and constant currency EPS growth of 5%-8% ($3.52 to $3.62) from continuing operations, excluding special charges in fiscal 2012.
- On May 24, 2012, H.J. Heinz Co announced that its Board of Directors has approved a 7.3% increase in the annualized common stock dividend. The quarterly common stock dividend will increase from $0.48 to $0.515 per share quarterly for all shareholders of record as of June 24, 2012, payable July 10, 2012.
- On March 27, 2012, BM&FBovespa (Bovespa) announced that, on April 4, 2012, the Brazilian Depositary Receipts (BDRs) Level I of H J Heinz Co will start being traded on Bovespa's over-the-counter (OTC) market, quoted in BRL per unit and with standard trading lot of 100 BDRs, under the ticker HNZB11.
ConAgra Foods (CAG), Campbell Soup (CPB), General Mills (GIS), Kellogg Company (K), and Kraft Foods (KFT) are considered major competitors for Heinz and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.
Competitors' Latest Development
- On August 21, 2012, Reuters reported that Kraft Foods Inc would sell a majority stake in its Back to Nature food brand to U.S. private equity firm Brynwood Partners for an undisclosed amount.
- On August 20, 2012, ConAgra Foods Inc announced that it has completed its acquisition of the Bertolli and P.F. Chang`s Home Menu frozen meals businesses from Unilever PLC, for total cash consideration of $267 million, subject to adjustment.
- On August 14, 2012, Kraft Foods Inc announced that its Board of Directors approved the spin-off of its North American grocery business and declared a pro rata distribution of shares of Kraft Foods Group, Inc. (which will hold the North American grocery business) to holders of Kraft Foods Inc. common stock.
- On August 6, 2012, Campbell Soup Company announced it has completed the acquisition of Bolthouse Farms from a fund managed by Madison Dearborn Partners, LLC, a private equity firm, for $1.55 billion in cash.
- On August 1, 2012, General Mills, Inc. announced the completion of its acquisition of Yoki Alimentos SA.
- On July 30, 2012, ConAgra Foods, Inc. announced that for fiscal 2013, it expects year over year earnings per share (EPS) growth of 6%-8%, over the comparable fiscal 2012 EPS of $1.84. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.98 for fiscal 2013.
- On July 30, 2012, Unilever plc announced that it has signed a definitive agreement for the sale of its North America frozen meals business to ConAgra Foods, Inc. for a total cash consideration of $265 million.
- On July 24, 2012, Campbell Soup Co reiterated fiscal 2012 guidance ranges for sales adjusted EBIT and adjusted EPS. The Company expects sales and adjusted EBIT number will be near the low end of their ranges, and that adjusted EPS will be near the upper end of its range.
- On July 20, 2012, Kellogg Company announced that its Board of Directors declared a dividend of $0.44 per share on the common stock of the Company, payable on September 17, 2012, to shareowners of record at the close of business on September 4, 2012.
- On July 18, 2012, Kraft Foods Inc and SodaStream International, Ltd. announced the expansion of their strategic partnership for the manufacturing, marketing, distribution and sale of Kraft Foods beverage brands for use with the SodaStream soda making system.
- On July 10, 2012, General Mills, Inc. announced that for fiscal 2013, the Company still targeting net sales to grow at a mid single-digit rate and expects adjusted diluted earnings per share to grow approximately $2.65, including headwinds from pension expense, tax, and acquisition-related costs for Yoki.
- On July 9, 2012, Campbell Soup Company announced that it has entered into an agreement to acquire Bolthouse Farms from a fund managed by Madison Dearborn Partners, LLC, a private equity firm, for $1.55 billion in cash.
- On June 27, 2012, General Mills, Inc. announced that for fiscal 2013, it expects net sales to grow at a mid-single-digit rate. The fiscal 2013 guidance provided above does not include any contribution from the anticipated acquisition of Yoki Alimentos, S.A., a Brazilian food company.
- On June 26, 2012, General Mills, Inc. announced that its Board of Directors has approved an 8% dividend increase for General Mills common stock. The new quarterly dividend of $0.33 per share is payable August.
- On June 21, 2012, ConAgra Foods, Inc. announced that for fiscal 2013, it expects year over year earnings per share growth of 6%-8%, adjusted for items impacting comparability.
- On June 19, 2012, Campbell Soup Company reiterated fiscal 2012 guidance and expects net sales would be near the bottom end of a 0% to 2% increase; operating profit would be near the bottom end of a negative 7% to negative 9% decrease; and that adjusted net earnings per share would be near the top end of the negative 5% to negative 7% range.
- On June 11, 2012, Campbell Soup Company announced it has purchased 1300 Admiral Wilson Boulevard in Camden, from Camden Gateway Properties, I, LLC. The 4-acre property includes the vacant Sears building.
- On May 31, 2012, Procter & Gamble Co announced that it has completed the sale of its Pringles business to Kellogg Company in a $2.695 billion all-cash transaction effective June 1, 2012.
- On May 24, 2012, General Mills, Inc. announced that it has signed a definitive agreement to acquire Yoki Alimentos S.A., a privately-held food company headquartered in Sao Bernardo do Campo, Brazil.
The stock has a market capitalization of $17.77B and is currently trading at $55.49 with a 52 week range of $48.54 - $56.00. The stock's year-to-date performance has been 4.60%. It is currently trading above 20, 50 and 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.