- Hershey’s swings to a surprise profit in the fiscal third quarter.
- The U.S. company tops analysts’ estimates for earnings and revenue.
- The chocolate manufacturer reinstates its guidance for the full year.
The Hershey Company (NYSE: HSY) reported its financial results on Friday that blew past Wall Street estimates for profit and revenue in the fiscal third quarter. The company also gave upbeat guidance for the full year on Friday.
CEO Michele Buck commented on the earnings report on Friday and said:
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“Our core U.S. business remains healthy as consumers reach for small treats during the pandemic, and our decision to lean into Halloween ahead of the season supported consumers’ desire to find new and creative ways to celebrate safely.”
Hershey’s Q3 financial results versus analysts’ estimates
Hershey’s said that its net income in the third quarter came in at £339.95 million that translates to £1.63 per share. In the comparable quarter of last year, its net income was capped at a lower £247.23 million, or £1.17 per share. In an announcement last week, Hershey’s revealed to have taken a stake in snack maker Quinn.
Adjusted for one-time items, the American multinational earned £1.41 per share in the recent quarter. FactSet Consensus for its per-share earnings in Q3 stood at a lower £1.32. In separate news from the U.S., hospitality company, Marriott International, also said on Friday that its revenue slipped 57.3% in the fiscal third quarter.
In terms of revenue, Hershey’s saw a 4.0% annualised growth in the third quarter to £1.69 billion versus £1.66 billion expected, as per FactSet. Gross margin, the Derry Township-based company said, jumped from 44.2% last year to 48.7% in the recent quarter.
Hershey’s guidance for the full year
Hershey’s had suspended its guidance for fiscal 2020 in April due to the Coronavirus pandemic. On Friday, the company reinstated its full-year guidance and said that it expects adjusted EPS to fall in the range of £4.70 to £4.74 this year. FactSet Consensus for its annual adjusted per-share earnings stands at a lower £4.60 instead.
Hershey’s jumped close to 4% in premarket trading on Friday. Including the price action, shares of the company are now exchanging hands at £113.49 after recovering from a year to date low of £84.69 per share in March, when the impact of COVID-19 was at its peak. Here’s what you need to know about stocks and the stock market.
At the time of writing, the largest chocolate manufacturer in the world is valued at £16.68 billion and has a price to earnings ratio of 29.20.