Hershey Co. Beats Profit and Revenue Expectations with Higher Prices
Hershey Co. surpasses profit and revenue expectations through increased prices, with impressive sales across segments and positive outlook for growth.
# Hershey Co. Beats Profit and Revenue Expectations with Higher Prices
Shares of Hershey Co. rallied 2.3% in premarket trading Thursday after the chocolate and salty snacks company exceeded profit and revenue expectations, mainly due to increased prices.
Hershey reported a net income of $518.6 million, or $2.52 per share, compared to $399.5 million, or $1.94 per share, in the same period last year. Adjusted earnings per share of $2.60 surpassed the FactSet consensus of $2.46.
Sales experienced a significant surge, rising by 11.1% to $3.03 billion, surpassing the FactSet consensus of $2.95 billion. This growth was primarily driven by price realization, with volumes witnessing a slight increase.
Hershey enjoyed strong performance across its business segments. North America confectionary sales grew by 9.9%, while North America salty snacks sales soared by an impressive 25.5%. Additionally, international sales increased by 4.4%.
The company remains confident in its future prospects and affirms its adjusted EPS growth guidance of 11% to 12% for 2023. The current FactSet EPS consensus of $9.53 implies a growth rate of 11.9%.
Despite recent challenges, Hershey's stock has shown resilience. Over the past three months through Wednesday, it has only dipped by 19.1%, whereas the S&P 500 has experienced an 8.3% decline.