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Hershey Company Earnings Preview: Revenue, Earnings Expected to Fall from Previous Quarter

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Hershey Company (NYSE: HSY) announces its next round of earnings this Tuesday, July 26, 2011. Here's Benzinga's advanced look at Hershey's second quarter earnings report.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS reading of 54 cents per share and revenues of $1.27 billion. Hershey's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported EPS of 51 cents per share on revenues of $1.23 billion. We'll have to wait for Tuesday to see if Hershey Company has accomplished the estimated 5.9% rise in EPS and 3.3% increase in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 Q4 Q3 Q2
EPS Estimate $0.70 $0.61 $0.79 $0.47
EPS Actual $0.72 $0.61 $0.79 $0.51

Stock Performance:

Shares of Hershey Company were trading at $56.60 as of July 20, 2011. Shares are up 21.6% year to date. For a full 12 months, the return has risen by 15.7%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

  • Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Hershey Company is a Hold. Over the past three months this rating's strength has declined slightly.

Competitors:

Want to check out the performance of Hershey Company closest competitors? Take a look at some of the company's peers in the consumer staples sector.

  • General Mills (NYSE: GIS): Moderate Buy with a $0.52 recent quarter EPS
  • Hain Celestial Group (NASDAQ: HAIN): Moderate Buy with a $0.36 recent quarter EPS
  • Kraft (NYSE: KFT): Moderate Buy with a $0.52 recent quarter EPS

The food-confectionary company's industry has seen price/earnings growth of 2.7% during the current fiscal year.

Finally, a description of the company's main areas of operation: Hershey manufactures chocolate and confectionery products, food and beverage enhancers and gum and mint refreshment products.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Hershey Company earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

  • To see up-to-date news on Hershey Company, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Earnings News Short Ideas Previews Trading Ideas

 

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