Food product company, H.J. Heinz Company(HNZ) reported a drop in third quarter profits on Friday, but beat analysts estimates.
The Pittsburgh, PA based company reported third quarter earnings of $269.5 million, or 83 cents per share, down -5% from $284.7 million, or 88 cents per share last year. Excluding special items, earnings were 99 cents per share, which beat analysts estimate of 90 cents per share.
Revenue for the quarter rose by 2% to $2.93 billion, from $2.87 billion last year. Analysts expected to see $2.99 billion in revenue.
Organic sales in emerging markets increased by 17.6%, which was primarily due to sales in Latin America, Indonesia, and China. Global ketchup sales rose 4.2%, mainly due to growth in Russia, Latin America, and Canada.
Last week, the company announced that it will be acquired by Warren Buffett’s Berkshire Hathaway and 3G Capital. This deal is the largest deal in history for the food industry.
Heinz shares were mostly flat during premarket trading Friday. The stock has increased 32.5% in the past year.
The Bottom Line
Shares of H.J. Heinz Company(HNZ) have a 2.85% yield, based on Thursday’s closing price of $72.19.
H.J. Heinz Company(HNZ) is a “Recommended” dividend stock at this time, holding a Dividend.com DARS™ Rating of 3.6 out of 5 stars.