- Hershey posted an adjusted EPS of $1.21 for the second quarter, surpassing the estimated $1.01, but slightly lower than last year’s $1.27.
- The company’s net sales hit $2.61 billion, marking a 26% increase compared to the previous year and exceeding the estimated $2.52 billion.
- North America confectionery net sales reached $2.09 billion, a 32% increase year-over-year, outperforming the forecast of $2 billion.
- Sales for North America salty snacks climbed to $315.5 million, up by 8.8% from last year, and above the expected $305.8 million.
- International net sales were $213.7 million, a 4.4% increase year-over-year, but below the predicted $228.2 million.
- Overall net sales at organic constant FX rose by 26.3%, contrasting significantly from a 16.8% decrease last year, and exceeded the 22.4% estimate.
- North America confectionery sales at constant FX grew by 31.6%, recovering from a 20.7% slump last year and surpassing the 26.3% projection.
- At constant FX, North America salty snacks sales increased by 8.8%, compared to a 6.4% rise last year, beating the 5.3% estimated growth.
- International net sales on an organic constant FX basis went up by 10%, a notable rebound from a 10.4% decline last year but slightly below the 14.8% forecast.
- The company’s adjusted gross profit reached $997.0 million, an 11% increase from the previous year and above the estimated $920.4 million.
- Adjusted gross margin stood at 38.1%, a reduction from last year’s 43.2%, yet exceeded the expected 36.4% margin.
- Hershey is revising its earnings per share outlook to account for expected full-year tariff expenses, affecting projections beyond the second quarter.
- Analyst recommendations for Hershey include 3 buys, 18 holds, and 4 sells.
Hershey Co/The on Smartkarma
Analyst coverage of Hershey Co/The on Smartkarma, an independent investment research network, has provided valuable insights into the company’s recent performance and future prospects. Baptista Research, a prominent provider on Smartkarma, published research reports on Hershey Co, offering a bullish sentiment on the company.
In their report titled “The Hershey Company: Can The Management Generate Material Growth While Tackling Regulatory & Market Challenges?“, Baptista Research highlighted Hershey’s operational agility in mitigating potential financial impacts from tariffs. Another report by Baptista Research, “The Hershey Co: Can Pricing Power and Innovation Keep Profits Sweet?“, delved into Hershey’s strategies to overcome challenges like cocoa price volatility and sustain growth in the market. These insightful analyses provide investors with a comprehensive view of Hershey Co’s current standing and future growth potential.
A look at Hershey Co/The Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Hershey Co/The, the company has a solid overall outlook. With a high Dividend score of 4, investors can expect good returns from dividend payments. Additionally, the Momentum score of 4 indicates that the company is likely to perform well in the near future. This suggests that Hershey Co/The may be a reliable option for long-term investors seeking stable returns.
The company’s Value score of 2 suggests that Hershey Co/The may not be currently considered undervalued, while the Growth and Resilience scores of 3 each indicate moderate prospects for future growth and ability to withstand economic challenges. Overall, Hershey Co/The appears to be a well-established company in the confectionery industry, offering a blend of dividends, growth potential, and stability for investors.
### The Hershey Company manufactures chocolate and sugar confectionery products. The Company’s principal products include chocolate and sugar confectionery products; gum and mint refreshment products; and pantry items, such as baking ingredients, toppings and beverages. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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