Earnings Preview: H.J. Heinz Co.

H.J. Heinz Company (HNZ) is expected to report Q1 earnings before market open Thursday, Aug. 21, with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for EPS of 66c on revenue of $2.46B. The consensus range is 65c to 67c for EPS, and $2.38B to $2.5B for revenue, according to First Call. The company reported in line results for Q4 and gave guidance for FY09. Heinz expects FY09 EPS up 8% to 11%, around $2.83 to $2.91 vs. consensus of $2.90. On August 13 the company reiterated its FY09 guidance and gave its forecast for FY10. H.J. Heinz expects FY09, FY10 sales growth of 6% or higher, consumer marketing growth of 8% to 12%, operating net income growth of 6% to 7% and EPS growth of 8% to 11%.

Analyst Views

On July 2, H. J. Heinz announced its intention to acquire Benedicta, a French manufacturer of table top sauces, mayonnaises and salad dressings. Terms of the intended transaction were not disclosed. Many analysts see growth potential for the company. Davenport & Co. has given the company a Buy rating, based in part to solid growth in its top 15 brands, which account for 70% of its sales.