The 10-second takeaway
For the quarter ended March 31 (Q1), Hershey met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Margins expanded across the board.
Hershey logged revenue of $1.83 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $1.84 billion on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $1.73 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 $1.09. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.04 per share. Non-GAAP EPS of $1.09 for Q1 were 14% higher than the prior-year quarter's $0.96 per share. GAAP EPS of $1.08 for Q1 were 24% higher than the prior-year quarter's $0.87 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 46.5%, 250 basis points better than the prior-year quarter. Operating margin was 21.8%, 110 basis points better than the prior-year quarter. Net margin was 13.2%, 170 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $7.06 billion. The average EPS estimate is $3.65.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 531 members out of 640 rating the stock outperform, and 109 members rating it underperform. Among 208 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 185 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 hold, with an average price target of $82.20.
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