Why Is Chocolate Maker Hershey's Stock Ticking Higher Today?

Zinger Key Points
  • Hershey posts Q1 revenue of $3.252 billion, beating the analyst consensus estimate of $3.112 billion.
  • Adjusted EPS of $3.07 beat the analyst consensus of $2.76.

Hershey Company HSY shares are trading higher after the reported better-than-expected first-quarter FY24 earnings.

The company reported first-quarter FY24 sales growth of 8.9% year-on-year to $3.252 billion, beating the analyst consensus estimate of $3.112 billion.

Hershey’s North America Confectionery segment net sales rose 10.4% Y/Y to $2.707 billion. Sales for Hershey’s International segment increased 1.8% to $270.3 million.

Gross margin expanded 520 basis points Y/Y to 51.5%, and gross profit rose 21.3% Y/Y to $1.67 billion.

Operating margin expanded 570 basis points to 32.5%, and the operating income for the quarter was $1.06 billion.

Adjusted EPS of $3.07 beat the analyst consensus of $2.76.

Hershey held $520.4 million in cash and equivalents as of March-end.

“Our investments in innovation, marketing and in-store execution are driving consumer engagement and improving market share performance across segments,” said President and CEO Michele Buck.

Hershey board declared quarterly dividends of $1.370 on the common stock and $1.245 on the Class B common stock.  The dividends were declared on May 2, 2024, and are payable on June 14 to stockholders of record as of May 17.

Outlook: Hershey reaffirmed FY24 net sales growth of about 2% – 3% versus an estimate of $11.47 billion and adjusted EPS of $9.59 against the consensus of $9.57.

Price Action: HSY shares traded higher by 1.59% at $198.99 premarket at the last check Friday.

Photo via Wikimedia Commons

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceMoversGeneralBriefsStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!