Hershey Co. Earnings: Here’s Why the Stock is Rising Now

Hershey Co. (NYSE:HSY) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.00%.

Hershey Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.09% to $0.72 in the quarter versus EPS of $0.66 in the year-earlier quarter.

Revenue: Rose 6.65% to $1.51 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hershey Co. reported adjusted EPS income of $0.72 per share. By that measure, the company beat the mean analyst estimate of $0.71. It missed the average revenue estimate of $1.51 billion.

Quoting Management: “We delivered another quarter of strong sales and earnings growth driven by solid core brand and new product performance,” said John P. Bilbrey, President and Chief Executive Officer, The Hershey Company. “Our intellectual capital and Insights Driven Performance program initiatives continue to provide us with a competitive advantage in the marketplace. The marketing and sales teams are working collaboratively against the same goal of winning in the marketplace. This has resulted in solid in-store execution related to core brand merchandising and programming as well as new product distribution. Combined with supply chain efficiencies, we have the financial flexibility to invest in our greatest opportunities to drive global growth and deliver on our objectives.”

Key Stats (on next page)…

Revenue decreased 17.45% from $1.83 billion in the previous quarter. EPS decreased 33.94% from $1.09 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.01 to a profit $1. For the current year, the average estimate has moved down from a profit of $3.66 to a profit of $3.65 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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