Hershey Foods (HSY) Tops Q1 EPS by 6c; Updates Outlook

Hershey Foods (NYSE: HSY) reported Q1 EPS of $1.31, $0.06 better than the analyst estimate of $1.25. Revenue for the quarter came in at $1.88 billion versus the consensus estimate of $1.89 billion.

“I’m pleased with our first-quarter results, which were driven by seasonal sales growth, the roll-out of Hershey’s Cookie Layer Crunch bars and our continued focus on cost control,” said Michele Buck, President and Chief Executive Officer, The Hershey Company. “Net sales increased 2.8%, slightly less than our forecast and reflective of the broader soft U.S. food-industry retail trends to start the year. Gross margin expansion was solid, which contributed to strong operating profit growth. First quarter U.S. retail takeaway was primarily impacted by the timing of Easter, however, our market share gains were solid. The launch of Hershey’s Cookie Layer Crunch bars got off to a good start and we’re following that up with the roll out of Hershey’s Crunchers candy and Reese’s Crunchy Cookie Cups. Importantly, while preliminary, our Easter sell through is in line with our estimate and we anticipate Hershey U.S. candy, mint and gum (CMG) April year-to-date retail takeaway will be about 2.5%.”

GUIDANCE:

Hershey Foods sees FY2017 EPS of $4.72-$4.81, versus the consensus of $4.78.

For earnings history and earnings-related data on Hershey Foods (HSY) click here.

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