Food products giant H.J. Heinz Company ( HNZ ) on Thursday said its fiscal third quarter profit surged 20% from last year and announced it has taken a big stake in a Brazilian condiments maker.
The Pittsburgh-based company reported fiscal third quarter net income of $273.9 million, or 85 cents per share, compared with $228.5 million, or 72 cents per share, in the year-ago period.
Revenue rose 2% from last year to $2.72 billion.
On average, Wall Street analysts expected a smaller profit of 83 cents per share on matching revenue of $2.72 billion.
In another announcement, Heinz said it would purchase an 80% stake in Brazilian tomato sauce and ketchup maker S.A. Industrias Alimenticias. The company said it expects the move to double its sales in Latin America. That deal should close within the next few months.
Heinz shares rose 71 cents, or +1.5%, in premarket trading Thursday.
The Bottom Line
We have been recommending shares of H.J. Heinz ( HNZ ) since Jan.24, 2009, when the stock was trading at $35.06. The company has a 3.67% dividend yield, based on last night's closing stock price of $48.98.
H.J. Heinz Company ( HNZ ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
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