China Concerns Create 5:1 Upside Opportunity For Hershey
Valkyria Capital Partners
Valkyria Capital Partners
Yesterday, 10:19 AM
- Hershey (HSY +2.1%) reports net sales rose 4.5% on a constant currency basis in Q2.
- Volume contributed 3.1 percentage point of growth in the quarter.
- Segment sales: North America: $1.45B (+3.2%); International & other: $192.8M (+7.6%).
- Retail chocolate sales in China improved sequentially.
- Adjusted gross margin rate fell 120 bps to 45.5% due to higher commodity and other supply chain costs and unfavorable sales mix.
- Adjusted operating margin rate dropped 20 bps to 18.1%.
- FY2016 Guidance: Net sales: ~+1% (~+2% on a constant currency basis); Gross margin: slightly down Y/Y; GAAP EPS: $3.77 to $3.86; Adjusted EPS: $4.24 to $4.28 (+3% to +4%).
Yesterday, 7:52 AM
Yesterday, 7:02 AM
Wed, Jul. 27, 5:30 PM
- AB, ABMD, ACIW, ACOR, ADP, AEP, ALKS, ALLE, ALXN, AMT, APD, ARIA, AZN, BC, BCC, BCO, BCOR, BEN, BG, BGCP, BHI, BMS, BMY, BSX, BWA, BWEN, BZH, CAB, CBG, CBM, CELG, CFX, CIT, CL, CLF, CLFD, CME, CMS, COMM, COP, COR, CRR, CRS, CS, CSH, CVI, CVRR, CWT, DBD, DFT, DLX, DOW, DSX, EME, EPD, EQM, EQT, EXLS, F, FCFS, FCN, FI, FIG, FITB, FLY, FSS, GLOP, GNC, GOV, GPI, GPN, GRUB, GTLS, HCA, HEES, HOG, HP, HSY, HTH, IART, IDA, IGT, INCR, INGR, IP, IPGP, IRDM, ITC, ITG, IVC, IVZ, KEM, LAD, LAZ, LDOS, LEA, LKQ, LLL, LPG, MA, MCS, MD, MDP, MDWD, MINI, MITK, MJN, MKTX, MMC, MNRO, MPC, MPLX, MSCI, MTH, MTRN, MVIS, NAP, NEWM, NICE, NMR, NOV, NTCT, NYT, OAK, ODFL, ORI, OSK, PAG, PCG, PES, PF, PJC, PNR, POT, PRLB, PTEN, PX, RDN, RDS.A, RPM, RTN, SCG, SEE, SERV, SFE, SPB, SPGI, SQBG, SQNS, STNG, SXC, SXCP, TCK, TFX, TGI, THRM, TKR, TMO, TPX, TREE, TRI, TZOO, UAN, UBSI, UTHR, VC, VGR, VIVO, VNTV, WCC, WILN, WRLD, WST, WWE, YNDX, ZBH
Fri, Jul. 22, 5:53 PM
- The Hershey Trust (NYSE:HSY), facing a court date over governance charges, will settle with Pennsylvania's attorney general to resolve its investigation, according to Dow Jones reports.
- That action will include more resignations on its board. Several members of the Hershey Trust board have resigned over the past year, amid a takeover attempt by Mondelez (NASDAQ:MDLZ).
- The attorney general has been probing the trust -- a charitable trust that controls the fate of the Hershey Co. -- for excessive spending and letting board members overstay their terms.
- Updated 5:58 p.m.: Reuters reports that the deal will put 10-year term limits on trustees, with three trustees (Joseph Senser, Robert Cavanaugh and James Nevels) required to step down by the end of this year, and Chairwoman Velma Redmond leaving by the end of 2017 along with James Mead. Trustees' compensation will also be capped.
- Previously: The Hershey Trust may be heading to court (Jul. 14 2016)
- Previously: More disruption with the Hershey Trust (Jul. 11 2016)
Thu, Jul. 14, 9:48 AM
- The charitable trust with a controlling interest in Hershey (HSY +0.5%) may have to go to court to face the Pennsylvania Attorney General's office over governance charges, sources tell The Wall Street Journal.
- The court battle would be a major distraction just as Mondelez International (MDLZ +0.4%) dials up pressure on a sale.
- Hershey trades right around $109 after running up to as high as $115 amid takeover talk.
Wed, Jul. 13, 11:35 AM
- It's steady as she goes again for the group of well-known consumer staples stocks that investors continue to find appealing amid global volatility and low interest rates.
- Procter & Gamble (PG +0.2%), Colgate-Palmolive (CL +0.4%), Clorox (CLX +0.6%), Kimbery-Clark (KMB +0.3%), Coca-Cola (KO +0.2%), PepsiCo (PEP +0.7%), Altria Group (MO +0.5%), Philip Morris International (PM +0.1%), Church & Dwight (CHD +0.3%), and Unilever (UN, UL) have all outperformed the S&P 500 Index this year with returns ranging from 7% to 18%. Kraft Heinz (KHC +1%), Energizer (ENR -0.6%), Hershey (HSY +0.4%), Campbell Soup (CPB +0.3%), and J.M. Smucker (SJM +0.4%) are all up at least 20% YTD.
- Goldman Sachs has an explanation on why a generous valuation is warranted for the staples favorites.
- "We raise our average Staples target multiples to 20-22X P/E, up from the 19-20X range prior, to reflect the recent decline in 10-year yield as well as some likelihood of a slower rise in yield over the next 12 months and broader market volatility," wrote the MNST)+(NYSE:STZ)+(NYSE:PF)/11822884.html" target="_blank">analyst team covering the sector in a note to investors.
- Top consumer staples picks from GS include Monster Beverage (MNST +0.4%), Constellation Brands (STZ +0.2%), Pinnacle Foods (PF +1.2%), and Post Holdings (POST +0.5%).
- Consumer staples ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
Mon, Jul. 11, 1:41 PM
- A board member of the trust that holds a controlling stake in Hershey (HSY) has resigned following the company's rejection of an offer from Mondelez International (MDLZ -0.5%), according to Reuters.
- Joan Steel's resignation is the fourth from the Hershey Trust board since last year amid a battle with the Pennsylvania Attorney General's office over its corporate structure.
Wed, Jul. 6, 7:41 AM
- Susquehanna analyst Pablo Zuanic thinks a number of political challenges stand in the way of Mondelez International (NASDAQ:MDLZ) acquiring Hershey (NYSE:HSY).
- The controlling Hershey Trust (81.5% of voting stock) would need the backing of the Pennsylvania Attorney General, governor, and legislature during an election year in the state.
- Hershey closed at $110.55 yesterday after trading as high as $117.79 after the Mondelez talk ignited last week.
- Hershey rejected the first offer from Mondelez.
Mon, Jul. 4, 6:02 AM
- While Hershey's (NYSE:HSY) board of directors unanimously rejected Mondelez's (NASDAQ:MDLZ) $23B bid on Thursday, its once impenetrable defenses are now looking weaker, Reuters reports.
- The Hershey Trust (which holds 81% of the company's voting stock) is under investigation and the Pennsylvania AG's office (which has say in any change in Hershey's ownership) is probing how much it spends and how long its directors have served for.
- Given the upheaval at the trust and the potential for three new board members, some analysts feel there is a chance the trust could be more open to a sale of the confectioner in the future.
Thu, Jun. 30, 2:31 PM
- Hershey (NYSE:HSY) says it has rejected the takeover bid from Mondelez (NASDAQ:MDLZ), with a unanimous vote.
- The company said it got a nonbinding indication of interest for a cash-and-stock deal totaling $107/share of Hershey common stock, along with nonmonetary considerations.
- Hershey says it carefully reviewed the indication of interest, the board uninamously rejected it, and that it determined it provided "no basis for further discussion between Mondelez and the company."
- Shares of Hershey still halted. MDLZ is up 4.2%.
- Updated 2:37 p.m.: Hershey has resumed trading, down slightly from its all-time high of $117.79 set earlier but still up 13.5% on the day.
- Previously: Hershey rises 19% on report of blockbuster buyout offer from Mondelez (Jun. 30 2016)
- Previously: Hershey jumps 7.6% on report of takeout bid by Mondelez (Jun. 30 2016)
Thu, Jun. 30, 12:46 PM
Thu, Jun. 30, 12:00 PM
Thu, Jun. 30, 10:54 AM
- Hershey (NYSE:HSY) is now up 19.4% after reports of a buyout offer by food giant Mondelez (MDLZ +1.8%).
- Terms of a deal aren't known, but Hershey is worth $21B and Mondelez nearly $70B, and the combination would unite a well-known American candy brand with the maker of Cadbury chocolates.
- Any deal depends on the approval of the Hershey Trust (holders of 81% of its votes), which has opposed selling in the past.
- Mondelez is trying to make a compelling case, though, promising to relocate its chocolate HQ to Hershey, Pa., and rename itself Hershey.
- Updated 12:29 p.m.: Hershey shares halted again for news.
Thu, Jun. 30, 10:36 AM
- Mondelez (NASDAQ:MDLZ), the food giant that had been carved out of Kraft Foods, has made a takeover bid for Hershey (NYSE:HSY), The Wall Street Journal reports.
- Hershey shares are up 7.6% in response.
- MDLZ is up 1.4% today.
- Updated 10:39 a.m.: Coming off a halt, Hershey is now up 17.5% to $114.09.
- Updated 10:45 a.m.: Hershey halted again, up 21.3%.
- Developing story ...
Thu, Jun. 9, 10:44 AM
- Shares of Hershey (NYSE:HSY) are up 1.7% with some traders chatting up a Nestle (OTCPK:NSRGY, OTCPK:NSRGF) buyout scenario.
- Nestle is currently third in the North America chocolate market behind Hershey and Mars.
- A Nestle-Hershey combination would likely lead to some asset sales, similar to the MegaBrew deal maneuvers that Anheuser-Busch InBev and SABMiller had to work out to appease regulators.
The Hershey Co. produces chocolate and sugar confectionery products. It operates in the geographic regions North America and International & Others. The North America segment is responsible for our chocolate and sugar confectionery market position in the United States and Canada. This includes... More
Sector: Consumer Goods
Country: United States
Other News & PR