Hershey Earnings: Sweetens Shareholder Satisfaction

Hershey Co. (NYSE:HSY) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.49%.

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Hershey Co. Earnings Cheat Sheet

Results: Net income increased 5.54% to $150 million (74 cents per diluted share) in the quarter versus a net gain of $142.13 million in the year-earlier quarter.

Revenue: Rose 11.67% to $1.75 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hershey Co. reported adjusted net income of 74 cents per share. By that measure, the company missed the mean analyst estimate of $0.76. It beat the average revenue estimate of $1.71 billion.

Quoting Management: “Hershey’s fourth quarter financial and marketplace results represent a strong finish to 2012 and validate our strategy of focusing investments in the U.S. and key international geographies,” said John P. Bilbrey, President and Chief Executive Officer, The Hershey Company. “As expected, fourth quarter marketplace performance was solid and we gained market share in every category – chocolate, non-chocolate, mint and gum. We had solid seasonal growth in 2012, with retail sell-through in measured channels in line with our estimates…

…Additionally, for the combined four seasons, and the important Halloween period, our market share gain was identical, 0.8 points. Our solid financial performance gave us flexibility in our approach to investments in global go-to-market capabilities that will benefit Hershey over the near and long-term. We’ll build on our success in 2013 and are confident that our plans will drive core brand volume growth in U.S. and international markets.”

Key Stats:

Revenue increased 0.19% from $1.75 billion in the previous quarter. Net income decreased 15.12% from $176.72 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.04 and has not changed. For the current year, the average estimate is a profit of $3.24, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)