H. J. Heinz Company (NYSE:HNZ) announced its results for the most recent quarter on November 20, 2012. HJ Heinz manufactures food products, including ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products.

In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Everything Investors Need To Know About Earnings

The Numbers: H. J. Heinz's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported 90 cents per share versus the 88 cents per share estimate and revenues of $2.83 billion versus the $3.07 billion estimate. EPS rose 23.3% while revenue declined 0.2% from the same period last year. Revenue declined last quarter after shrinking 2% to $2.79 billion in the first quarter. H. J. Heinz's net income for the second quarter was $289.4 million, a 22.1% increase from last year.

Management Quote: "Heinz delivered solid results while making significant investments in our businesses and brands to drive growth," said Chairman, President and CEO William R. Johnson. "Notably, Heinz delivered its 30th consecutive quarter of organic sales growth, led by our trio of growth engines: Emerging Markets, Global Ketchup and the Company's Top 15 Brands."

A Look Back: Net income has increased 2.6% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 22.1% from the year-earlier quarter.

Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the third quarter has moved down from 99 cents a share to 93 cents over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year has remained at $3.52 per share.



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