Hershey Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Hershey (NYSE:HSY) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Hershey manufactures chocolate and confectionery products, food and beverage enhancers and gum and mint refreshment products.

Hershey Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 75 cents per share, a rise of 7.1% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $3.24 per share, a rise of 14.9% from last year.

Past Earnings Performance: Last quarter, the company reported profit of 87 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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A Look Back: In the third quarter, profit fell 10.2% to $176.7 million (76 cents a share) from $196.7 million (86 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 7.5% to $1.75 billion from $1.62 billion.

Here’s how Hershey traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

hsy

Wall St. Revenue Expectations: Analysts are projecting a rise of 8.9% in revenue from the year-earlier quarter to $1.71 billion.

Analyst Ratings: There are mostly holds on the stock with 11 of 15 analysts surveyed giving that rating.

Key Stats:

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 4.9% in the fourth quarter of the last fiscal year, 24.1% in the first quarter and 4.4% in the second quarter before declining in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 5.7% in the fourth quarter of the last fiscal year, 10.7% in the first quarter and 6.7% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.38 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.45 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.3% to $1.55 billion while assets rose 2% to $2.14 billion.

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