’Reddit is built for this moment’ - Stock soars on crushed earnings
Investing.com -- The Hershey Company (NYSE:HSY) reported second-quarter earnings that exceeded analyst expectations on Wednesday, though shares fell 1.2% premarket as the chocolate maker lowered its full-year profit guidance due to tariff expenses.
The confectionery giant posted adjusted earnings of $1.21 per share, surpassing the analyst estimate of $0.99. Revenue reached $2.61 billion, beating the consensus forecast of $2.52 billion and representing a 26% increase YoY. The strong quarterly performance was largely driven by the company lapping planned inventory reductions from last year’s ERP system implementation and the timing of Easter.
"Investments in our brands and impactful innovation, coupled with effective execution, are driving solid sales and share gains across both our U.S. confection and salty snacking business," said Michele Buck, President and CEO of Hershey.
Despite the quarterly beat, Hershey updated its full-year outlook, now expecting adjusted earnings per share to decline 36% to 38%, compared to its previous guidance of a mid-30% range decrease. The company cited tariff expenses, which are expected to total approximately $170 to $180 million for the full year.
North America Confectionery, Hershey’s largest segment, saw sales increase 32% to $2.09 billion, with organic volume growth of approximately 25 points. The company’s U.S. candy, mint and gum retail takeaway grew 21.8% for the 12-week period ended June 29, with market share increasing 90 basis points.
The North America Salty Snacks segment, which includes brands like SkinnyPop and Dot’s Pretzels, reported an 8.8% sales increase to $315.5 million, while International segment sales rose 4.4% to $213.7 million.
Hershey maintained its full-year net sales growth forecast of at least 2%, while implementing commodity cost mitigation strategies to address ongoing cocoa inflation through "strategic pricing, enhanced productivity, and technology enabled efficiency."