On Feb. 27, Motley Fool Income Investor selection H.J. Heinz (NYSE:HNZ) released earnings for the third quarter ended Jan. 31.

  • Revenues increased 5% to $2.3 billion, helped by enhanced volume growth, higher pricing, and foreign exchange gains.
  • EPS increased 69.2% to $0.66 per diluted share from $0.39 per diluted share in the third quarter of fiscal 2006.
  • The company managed to improve its free cash flow by 10.6% to $64.2 million despite increased capital spending.
  • Heinz and some other consumer goods producers, such as Kraft Foods (NYSE:KFT) and ConAgra Foods (NYSE:CAG), have earned only a one-star rating in the Motley Fool CAPS intelligence database. Tell us what you think about these companies and more.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$2,295.2

$2,186.5

5.0%

Net Profit*

$219.0

$133.2

64.5%

EPS

$0.66

$0.39

69.2%

Diluted Shares

332.5

337.8

(1.6%)

*Net income from continuing operations

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

37.1%

35.7%

1.4

Operating Margin

16.4%

14.1%

2.3

Net Margin

9.5%

6.1%

3.5

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

We Fools like it better when companies don't forget the ketchup or the balance sheet information with earnings reports.

Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2007

Q3 2006

Change

Cash From Ops.

$125.1

$109.4

14.3%

Capital Expenditures

$61.0

$51.4

18.6%

Free Cash Flow

$64.2

$58.0

10.6%



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