China Concerns Create 5:1 Upside Opportunity For Hershey
Valkyria Capital Partners
Valkyria Capital Partners
Mon, May 23, 9:39 AM
- Athlos Research forecasts food input costs will rise 1.9% over the next six months which will increase the pressure on companies to use pricing to offset the inflation.
- Strong price gains are expected in the fruits/vegetables, softs/sweetners, and oils categories - while proteins, dairy, and grainscosts are expected to fall back.
- The impact on profit varies across the sector. A negative EBIT impact from cost inflation is forecast for Coca-Cola (NYSE:KO), PepsiCo (NYSE:PEP), Cott (NYSE:COT), Dr. Pepper Snapple (NYSE:DPS), Campbell Soup (NYSE:CPB), Pinnacle Foods (NYSE:PF), and Hormel (NYSE:HRL). Foods cost inflation will have a positive impact on EBIT for Post Holdings (NYSE:POST), Dean Foods (NYSE:DF), Hershey (NYSE:HSY), and Fresh Del Monte Products (NYSE:FDP), according to the Athlos estimate.
Wed, May 4, 9:09 AM
Tue, Apr. 26, 1:51 PM
- Hershey (HSY -2.4%) acquires Ripple Brand Collective for an undisclosed amount.
- The deal will bring the barkTHINS into Hershey's collection of brands.
- The snacking chocolate business is expected to generate $65M to $75M in sales this year.
- Previously: Hershey beats by $0.03, misses on revenue (April 26)
- Previously: More on Hershey's Q1 (April 26)
Tue, Apr. 26, 7:43 AM
- Hershey (NYSE:HSY) reports net sales rose 4.4% on a constant currency basis in Q1.
- Segment sales: North America: $1.63B (-4.3%); International & other: $195.3M (-15.4%).
- Retail chocolate sales in China declined ~10%
- Adjusted gross margin rate improved 20 bps to 46.8% due to supply chain productivity and cost savings initiatives and slightly favorable commodity costs.
- Adjusted operating margin rate grew 20 bps to 21.5%.
- FY2016 Guidance: Net sales: ~+1.5% (~+2.5% on a constant currency basis); GAAP EPS: $4.16 to $4.23; Adjusted EPS: $4.24 to $4.28 (+3% to +4%).
Tue, Apr. 26, 7:02 AM
Mon, Apr. 25, 5:30 PM
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Mon, Apr. 25, 2:45 PM
- Hershey (HSY +1%) plans to begin selling meat snacks through its Krave Pure Foods division as early as this summer, according to a report from Quartz.
- The different flavors for the jerky products range from barbecue to pineapple orange.
- Hershey acquired Krave Pure Foods about 15 months ago.
- Other large food companies such as Tyson Foods are also dabbling with meat snacks as more consumers shift toward protein-heavy diets.
- Now read Hershey And The Idea Of 'Cheap' Or 'Expensive'
Wed, Apr. 20, 2:05 PM
- Hershey (HSY -2.7%) trades lower after a biting two-notch downgrade from Bank of America Merrill Lynch.
- The food stock is now rated at Underweight after previously being slotted at Buy.
- A lack of near-term catalysts and concerns over the U.S. chocolate market are cited in the BAML note.
- The longer-term view on Hershey is a bit more positive from the investment firm, especially if it follows through with some of the M&A tipped during today's earnings call.
- Now read Hershey's Shanghai Acquisition Still A 'Golden Monkey
Thu, Mar. 10, 9:54 AM
- RBC Capital lifts its price targets on two consumer staples heavyweights.
- Coca-Cola (KO +0.6%) is assigned a fresh of $51. KO is +4.5% YTD to $44.90. Shares yield 3.11%.
- Reynolds American (RAI +1.4%) earns a PT of $57. RAI is +12.8% YTD to $52.14. Shares yield 3.22%.
- There's been some debate that the run of consumer staples stocks is poised to end, but SA contributor Daryl Montgomery argues the sector is still a safe play on a technical view.
- Earlier this week, Evercore ISI's Rick Ross also came in positive on the sector (CNBC video).
- "You probably can't do much better than owning the staples on this breakout from a multiyear trading range ... against the backdrop of a world where yields are extremely low,"said Ross
- Related stocks: PM, PG, PEP, CL, ADM, KMB, STZ, DPS, SJM, HRL, CHD, TSN, HSY, CPB, [[BF.]], BF.B.
- Related ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
Wed, Feb. 24, 12:50 PM
- Hershey (HSY -0.3%) announces it will partner with Blommer Chocolate and Olam Cocoa to build a second health center in Ivory Coast.
- The first facility addresses the health care needs of 13K people in three local communities. The second center will serve 24K people.
- The company is one of several multinationals which has faced criticism in the nation.
- Other Hershey news: Coverage on the food stock was launched by UBS with a Neutral rating. The Wall Street scorecard on HSY is 2 Buy/OW ratings, 6 Neutral/Hold ratings, and 2 Sell/Underweight ratings.
Mon, Feb. 8, 2:26 PM
- Investors are taking refuge in some weathered stocks in the consumer goods sector.
- Procter & Gamble (PG +0.9%), Hershey (HSY +2.2%), Altria (MO +0.3%), Hormel (HRL +1.9%), Clorox (CLX +1.8%), and Post Holdings (POST +0.4%) are all making gains despite the 375-point slide in the Dow Jones Industrial Average.
- The Consumer Staples Select ETF (NYSEARCA:XLP) is down 1%, compared to the much steeper losses in the tech and financials sectors.
Thu, Jan. 28, 7:15 AM
- Hershey (NYSE:HSY) declares $0.583/share quarterly dividend, in line with previous.
- Forward yield 2.76%
- Payable March 15; for shareholders of record Feb. 25; ex-div Feb. 23.
Thu, Jan. 28, 7:03 AM
- Hershey (NYSE:HSY): Q4 EPS of $1.08 beats by $0.03.
- Revenue of $1.91B (-5.0% Y/Y) misses by $70M.
Wed, Jan. 27, 5:30 PM
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Thu, Jan. 14, 7:50 AM
- Chocolate producers are working together to improve low cocoa crop yields in an effort to meet rising global demand.
- Older trees and poor crop management have held down yields in both Ivory Coast and Ghana.
- A higher level of production could have a ripple effect across the broader cocoa market.
- Related stocks: MDLZ, HSY, OTCPK:NSRGY, OTC:BYCBF, ADM.
- ETFs: NIB, CHOC
Dec. 14, 2015, 3:40 PM
- Hershey (HSY +2.4%) hires Rob Gehring to fill the position of Global Chief Sales Officer.
- Gehring was working at Coca-Cola North America.
- The company reported a 1.5% gain in organic sales during Q3. F/X and weakened demand for chocolate products in China have been dragging on the international side of the business.
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
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