Market Overview

Preview: Hershey's Earnings

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Hershey (NYSE: HSY) announces its next round of earnings this Friday, November 06. Here is Benzinga's everything-that-matters guide for this Friday's Q3 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Hershey EPS will likely be near $1.71 while revenue will be around $2.16 billion, according to analysts. In the same quarter last year, Hershey reported EPS of $1.61 on revenue of $2.13 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Friday, quarterly profit would be up 6.21%. Revenue would be up 1.22% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.15 1.71 1.24 1.60
EPS Actual 1.31 1.63 1.28 1.61
Revenue Estimate 1.74 B 2.08 B 2.06 B 2.12 B
Revenue Actual 1.71 B 2.04 B 2.07 B 2.13 B

Stock Performance

Shares of Hershey were trading at $143.92 as of November 04. Over the last 52-week period, shares are up 3.29%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hershey is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: Earnings