The Hershey Company Earnings Cheat Sheet: Another Quarter of Rising Profit

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

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

The Hershey Company Earnings Cheat Sheet for the Second Quarter

Results: Net income for the confectioner rose to $130 million (56 cents per share) vs. $46.7 million (20 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 7.5% to $1.33 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: HSY met the mean analyst estimate of 55 cents per share. It beat the average revenue estimate of $1.27 billion.

Quoting Management: “I’m pleased with Hershey’s second quarter results as solid marketplace momentum continued, resulting in strong overall financial performance,” said John P. Bilbrey, President and Chief Executive Officer. “Our business model and strategy to invest in core brands, disciplined innovation, Insights Driven Performance (IDP) and consumer capabilities remains effective and is sustainable. We’ll continue with this disciplined approach and build on these initiatives, in both domestic and international markets, as it will enable the Company to consistently meet its net sales and earnings objectives in the future.”

Key Stats:

The company has now seen net income rise in four straight quarters. In the first quarter, net income rose 8.6% while the figure climbed 6.9% in the fourth quarter of the last fiscal year and 11.2% in the third quarter of the last fiscal year from the year earlier.

Gross margin shrank 1.7 percentage points to 42.6%. The contraction appeared to be driven by increased costs, which rose 10.8% from the year earlier quarter while revenue rose 7.5%.

Revenue has risen the past four quarters. Revenue increased 11.1% to $1.56 billion in the first quarter. The figure rose 5.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 4.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 72 cents versus a mean estimate of net income of 70 cents per share.

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).

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

(Source: Xignite Financials)