The Hershey Company Earnings: Margins SWEETEN UP with Revenues, Net Income Rises

S&P 500 (NYSE:SPY) component The Hershey Company (NYSE:HSY) reported its results for the second quarter. Hershey manufactures chocolate and confectionery products, food and beverage enhancers and gum and mint refreshment products.

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The Hershey Company Earnings Cheat Sheet

Results: Net income for the food-confectionary rose to $135.7 million (59 cents per share) vs. $130 million (56 cents per share) in the same quarter a year earlier. This marks a rise of 4.4% from the year-earlier quarter.

Revenue: Rose 6.7% to $1.41 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Hershey Company fell short of the mean analyst estimate of 61 cents per share. Analysts were expecting revenue of $1.42 billion.

Quoting Management: “The Hershey Company reported another quarter of solid marketplace and financial results,” said John P. Bilbrey, President and Chief Executive Officer. “The investments we have made in our business over the last few years have enabled us to deliver predictable, profitable and sustainable growth, despite the challenging global macroeconomic conditions that continue to exist. In the second quarter, Hershey’s net sales increased 6.7 percent.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the first quarter, net income rose 24.1% and in the fourth quarter of the last fiscal year, the figure rose 4.9%.

Revenue has risen for the last four quarters. Revenue increased 10.7% to $1.73 billion in the first quarter. The figure rose 5.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 5% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 96 cents versus a mean estimate of net income of 81 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 94 cents per share to 91 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from $3.14 a share to $3.19 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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