Tuesday reported higher second-quarter profit but missed expectations, while offering tempered guidance.
The Pittsburgh-based food company posted net income of $199 million, or 56 cents a share, vs. $191.5 million, or 54 cents a share, in the year-ago period. Based on continuing operations, the company also earned 56 cents a share. Analysts expected 59 cents a share, according to Thomson First Call.
Revenue rose 5.2% to $2.20 billion. Sales at its North American consumer-products segment unit increased 8.4%, a result of significant growth in frozen potatoes, primarily due to new products in its Ore-Ida brand. European sales increased 5.2%, while Asia/Pacific's rose 3.0%.
Heinz reiterated its full-year EPS forecast of $2.32 to $2.42 a share, but was leaning toward the lower end of it. The consensus forecast is for $2.37 a share.
In its fiscal first quarter, net income fell to $194.8 million, or 55 cents a share, for its first quarter ended July 28, compared with $214 million, or 60 cents a share, in the year-ago period. Sales rose 5.7% to $2 million.
Shares closed at $38.39 Monday, about a dollar shy of their 52-week high.