Heinz wins analyst game in Q1, generates higher level of cash

All things considered, Heinz's operations appear to be running smoothly. Earnings per share did decrease on a reported basis, but the cash flow was much improved over last year's number. And if you strip out currency effects, the growth picture becomes more attractive. Emerging markets were highlighted as being a significant contributor to the quarter.

It would have been nice if Heinz had been able to increase its outlook for the year, but management only reaffirmed previous guidance. Perhaps, if the economy does indeed begin to expand this year and currency markets change, the company will be able to move its forecast to a higher level at a later date. We'll have to wait and see.

For now, it's enough to know that Heinz's brands are delivering the cash. As of this writing, shares of the company are up a little under 2% in afternoon trading. I wouldn't buy Heinz today, but I do think the direction of the stock is most likely higher through the rest of the year. The yield on the stock is very interesting, so if the market does head into that highly-anticipated correction that's been in the news, there might be some downside protection with this idea.

Disclosure: I don't own any company mentioned; positions can change without notice.