The Hershey Company Earnings: Fourth Straight Quarter of Profit Growth

The Hershey Company (NYSE: HSY) announced its results for the second quarter on July 26, 2011. Let's take a closer look at the company's industry, financials, and commentary and see what steps you can take next.

Earnings and Revenue:
Investors cheered The Hershey Company's latest numbers as the company reported EPS and revenues that topped predictions. The company reported EPS of adjusted net income of 56 cents/share versus the 55 cents/share estimate and revenues of $1.33 billion versus the $1.27 billion estimate. EPS rose 180% while revenue climbed 7.5% from the same period last year.

The company has now seen three quarters in a row of rising net income. Year over year revenue increases in the past five quarters have averaged 6.7%. The Hershey Company's revenue has increased the past four quarters on a year-over-year basis.

Income:
For the year, The Hershey Company reported net income of $2.68 per share. The company trumped analyst projections of $2.67 by 0.4%. According to the reported number, the company's income rose 178.3% from last year's levels.

Official Comment:
"I'm pleased with Hershey's second quarter results as solid marketplace momentum continued, resulting in strong overall financial performance," said John P. Bilbrey, President and Chief Executive Officer. "Our business model and strategy to invest in core brands, disciplined innovation, Insights Driven Performance (IDP) and consumer capabilities remains effective and is sustainable. We'll continue with this disciplined approach and build on these initiatives, in both domestic and international markets, as it will enable the Company to consistently meet its net sales and earnings objectives in the future."

Industry:
The Hershey Company is in the food-confectionary industry. That industry is currently enjoying price/earnings growth of 2.8%. The company's EPS compares favorably with its industry's estimated average of 12 cents.

What to Do Next:
That's it -- now you have all the facts to help you decide whether to buy, sell or hang onto your The Hershey Company shares. And don't forget to check in with us before next earnings season for a full preview of the company's next release.

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