Hershey and Green Mountain Shares Attract Trading Attention After Earnings

The Hershey Company (NYSE:HSY) reported its results for the fourth quarter. Net income for the confectioner rose to $142.1 million (62 cents per share) vs. $135.5 million (59 cents per share) in the same quarter a year earlier. This marks a rise of 4.9% from the year earlier quarter. Revenue rose 5.7% to $1.57 billion from the year earlier quarter. HSY reported adjusted net income of 70 cents per share. By that measure, the company fell in line with the mean estimate of 70 cents per share. Analysts were expecting revenue of $1.56 billion.

“In 2011, Hershey continued to make good progress against its business model and strategy of investing in core brands and capabilities in the U.S. and key international markets,” said John P. Bilbrey, President and Chief Executive Officer. “Our success is reflected in our solid net sales growth and market share gains, giving us flexibility to make broad-based investments while delivering on our earnings objectives.”

Competitors to Watch: Kraft Foods Inc. (NYSE:KFT), Snyder S Lance Inc (NASDAQ:LNCE), John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS), Tootsie Roll Industries, Inc. (NYSE:TR), Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF), Diamond Foods, Inc. (NASDAQ:DMND), Ralcorp Holdings, Inc. (NYSE:RAH), The Hain Celestial Group, Inc. (NASDAQ:HAIN), General Mills, Inc. (NYSE:GIS), and The J.M. Smucker Company (NYSE:SJM).

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) reported net income above Wall Street’s expectations for the first quarter. Net income for Green Mountain Coffee Roasters Inc. rose to $104.4 million (66 cents per share) vs. $2.4 million (2 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter. Revenue rose more than twofold to $1.16 billion from the year earlier quarter. Green Mountain Coffee Roasters Inc. reported adjusted net income of 60 cents per share. By that measure, the company beat the mean estimate of 36 cents per share. It beat the average revenue estimate of $1.06 billion.

“North American consumers continue to embrace the convenience, choice and consistent experience provided by the Keurig Single Cup Brewing system and, as evidenced by our strong holiday sales, are encouraging friends and family to do the same,” said Lawrence J. Blanford, GMCR’s president and CEO. “We believe our sales in the period were, in part, the result of our efforts to ensure strong in-stock positions on store shelves as well as due to growing awareness of the Keurig brand which was aided by our nationwide advertising and strong in-store merchandising.”

Competitors to Watch: Farmer Brothers Co. (NASDAQ:FARM), Peet’s Coffee & Tea, Inc. (NASDAQ:PEET), Coffee Holding Co., Inc. (NASDAQ:JVA), Starbucks Corporation (NASDAQ:SBUX), The J.M. Smucker Company (NYSE:SJM), Sara Lee Corp. (NYSE:SLE) and Kraft Foods Inc. (NYSE:KFT).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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