Hershey stock climbs on Q3 revenue beat, raised outlook

Hershey Co.’s stock rose 2.4% before market open Friday after the company reported better-than-expected third-quarter revenue and raised its outlook. The maker of Reese’s Peanut Butter Cups, Kit Kats, Hershey’s Kisses, Mounds and Almond Joy reported net income of $399.5 million, or $1.94 a share, compared with net income of $444.9 million, or $2.14 a share, in the same period last year. On adjusted basis, Hershey earned $2.17 a share. Analysts surveyed by FactSet were looking for earnings of $2.10 a share. The company’s third-quarter sales were $2.73 billion, compared with $2.36 billion in the year-ago quarter and above FactSet consensus of $2.62 billion. Hershey raised its guidance for 2022 net sales growth to 14% to 15%, from its prior guidance of 12% to 14%. The company also expects 2022 reported earnings per share growth of 11% to 13%, compared with its prior outlook of 9% to 12%. On an adjusted basis, Hershey raised its 2022 growth guidance for adjusted earnings per share to 14% to 15%, from its prior guidance of 12% to 14%. “Marketplace share and gross margin trends improved versus the second quarter, and we have strong momentum exiting the year,” said Hershey CEO Michele Buck, in the earnings release. “Given our performance to date and visibility into the fourth quarter, we are raising our net sales and earnings outlook for the year.”

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