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