- Hershey’s fourth quarter adjusted earnings per share (EPS) was $2.69, surpassing last year’s $2.02 and beating the estimate of $2.36.
- The company reported net sales of $2.89 billion, an 8.7% increase compared to the previous year, exceeding the estimate of $2.84 billion.
- North America confectionery net sales reached $2.35 billion, growing by 6% year-over-year and slightly above the estimated $2.34 billion.
- North America salty snacks net sales surged to $278.9 million, a 36% increase year-over-year, beating the estimate of $265.2 million.
- International net sales were reported at $254.5 million, marking a 9.8% growth compared to the previous year, and above the estimated $230.1 million.
- Net sales at organic constant foreign exchange (FX) increased by 9%, a significant improvement from the previous year’s -0.1%, surpassing the estimate of 6.95%.
- Sales of North America salty snacks at constant FX rose by 35.9%, exceeding the estimate of 29.7%.
- International net sales at organic constant FX grew by 15% compared to the previous year’s 8.3%, and significantly above the estimate of 3.97%.
- The adjusted gross profit reached $1.29 billion, showing a 10% increase year-over-year, higher than the estimate of $1.2 billion.
- Hershey reported an adjusted gross margin of 44.8%, an increase from last year’s 44.2%, surpassing the estimated 42.4%.
- The company projects a full-year net sales growth of at least 2% for 2025, primarily driven by net price realization.
- Analyst ratings include 3 buys, 19 holds, and 6 sells.
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Hershey Co/The on Smartkarma
Analyst coverage of The Hershey Company on Smartkarma showcases the company’s position in the confectionery industry, particularly amid recent acquisition rumors. Baptista Research‘s report titled “Is Hershey the Sweetest Deal for Mondelez? Here’s Why It Could Be the Perfect Acquisition!” explores the potential acquisition interest from Mondelez International, leading to a 14% surge in Hershey’s stock. While neither company has confirmed the rumors, investors are optimistic about the prospect of a significant industry player emerging, reflecting the intriguing timing of the news.
Furthermore, Baptista Research‘s insights on Hershey’s financial performance and strategic initiatives highlight the company’s resilience and growth prospects. In reports like “The Hershey Company: Can Its Innovation & Product Portfolio Expansion Up Their Game? – Major Drivers,” and “The Hershey Company: Expansion into New Product Categories and Markets & Major Drivers,” Hershey’s continued growth in the core chocolate category, efforts in new product innovation, and strategic market expansions demonstrate a mix of challenges and opportunities that investors are closely monitoring as the company navigates evolving market dynamics.
A look at Hershey Co/The Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
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 seems to have a mixed long-term outlook. With strong scores in Dividend and Growth, Hershey Co/The appears to be a stable investment option for those seeking steady income and potential for future growth. However, lower scores in Value, Resilience, and Momentum indicate potential challenges in terms of valuation, resilience to economic downturns, and market momentum.
The Hershey Company, known for manufacturing a variety of chocolate and sugar confectionery products, faces a landscape where its dividend and growth prospects shine, providing investors with a sense of security and potential for capital appreciation. However, factors such as value, resilience, and momentum may require closer monitoring to navigate potential risks and opportunities in the market.
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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