Hershey Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Hershey (NYS: HSY) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 1 (Q1), Hershey beat expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.


Margins increased across the board.

Revenue details
Hershey reported revenue of $1.73 billion. The 10 analysts polled by S&P Capital IQ foresaw sales of $1.66 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.56 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.96. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.81 per share on the same basis. GAAP EPS of $0.91 for Q1 were 30% higher than the prior-year quarter's $0.70 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.9%, 50 basis points better than the prior-year quarter. Operating margin was 19.5%, 120 basis points better than the prior-year quarter. Net margin was 11.5%, 130 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.42 billion. On the bottom line, the average EPS estimate is $0.63.

Next year's average estimate for revenue is $6.51 billion. The average EPS estimate is $3.13.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 502 members out of 608 rating the stock outperform, and 106 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 give Hershey a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hershey is hold, with an average price target of $62.38.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Hershey. Learn how to maximize your investment income in our free report: "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement