The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hershey beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Gross margins grew, operating margins contracted, net margins shrank.
Hershey chalked up revenue of $1.75 billion. The 12 analysts polled by S&P Capital IQ looked for a top line of $1.71 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $1.57 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.74. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.76 per share. GAAP EPS of $0.66 for Q4 were 6.5% higher than the prior-year quarter's $0.62 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 43.1%, 140 basis points better than the prior-year quarter. Operating margin was 15.4%, 100 basis points worse than the prior-year quarter. Net margin was 8.6%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.82 billion. On the bottom line, the average EPS estimate is $1.05.
Next year's average estimate for revenue is $6.99 billion. The average EPS estimate is $3.60.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 527 members out of 634 rating the stock outperform, and 107 members rating it underperform. Among 197 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 174 give Hershey a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hershey is outperform, with an average price target of $75.06.
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