Hershey's: Q1 EPS Down on Restructuring Charges, Revenues Flat

Hershey's reported Q1 net income fell 24% to $93.5 million, or $0.40/share, on a 1.2% increase in sales to $1.15b. Excluding restructuring costs of $40.4m, Hershey earned $0.51/share, in-line with analysts' average estimate. Hershey's revenues came up just short of analysts' consensus $1.17b estimate. CEO Richard H. Lenny said, "Results for the first quarter were essentially in-line with our expectations." Hershey's reaffirmed its 2007 outlook, saying it expects full year net sales growth of 3% -4% and diluted EPS from operations to increase in 7% - 9%. Hershey's traded slightly lower yesterday, -0.02% to $54.52, and is down 1.9% to $53.50 in thin pre-market trading of 1,000 shares. Its shares have traded between a range of $48.20 - $57.65 over the past year.

Sources: Press release, Associated Press
Commentary: Ooompa Loompa: Why Chocolate is the Golden Ticket • Hershey Hurts in Move Away from Core Chocolate • Hershey Leaves a Bad Taste For Shareholders
Stocks/ETFs to watch: The Hershey Company (HSY). Competitors: Cadbury Schweppes plc (CSG), Nestle (NSRGY.PK). ETFs: Rydex S&P Equal Weight Consumer Staples (RHS)

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