The Hershey Company Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Hershey Company (NYSE:HSY) will unveil its latest earnings on Tuesday, July 26, 2011. Hershey Co. manufactures chocolate and confectionery products, food and beverage enhancers and gum and mint refreshment products.

The Hershey Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 54 cents per share, a rise of 5.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 57 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 54 cents during the last month. For the year, analysts are projecting net income of $2.81 per share, a rise of 10.2% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported profit of 72 cents per share versus a mean estimate of 70 cents. Two quarters ago, it reported net income of 61 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.27 billion in revenue this quarter, a rise of 3.3% from the year ago quarter. Analysts are forecasting total revenue of $5.99 billion for the year, a rise of 5.6% from last year’s revenue of $5.67 billion.

Analyst Ratings: Analysts seem relatively indifferent about Hershey Company with eight of 14 analysts surveyed maintaining a hold rating.

Key Stats:

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

Revenue has risen the past four quarters. Revenue increased 11.1% to $1.56 billion in first quarter. The figure rose 5.4% in the fourth quarter of the last fiscal year from the year earlier, climbed 4.2% in the third quarter of the last fiscal year from the year-ago quarter and 5.3% in the second quarter of the last fiscal year.

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).

Stock Price Performance: During May 23, 2011 to July 20, 2011, the stock price had risen $1.46 (2.6%) from $55.14 to $56.60. The stock price saw one of its best stretches over the last year between January 4, 2011 and January 13, 2011 when shares rose for eight-straight days, rising 7.4% (+$3.39) over that span. It saw one of its worst periods between April 29, 2011 and May 9, 2011 when shares fell for seven-straight days, falling 3.2% (-$1.85) over that span. Shares are up $10.05 (+21.6%) year to date.

(Source: Xignite Financials)

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