China Concerns Create 5:1 Upside Opportunity For Hershey
Valkyria Capital Partners
Valkyria Capital Partners
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.
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%).
Oct. 28, 2015, 10:18 AM
- Hershey (HSY -3.8%) reports organic net sales rose 1.5% in Q3.
- Segment sales: North America: $1.73B (+2.4%); International & other: $226.91M (-15.2%).
- Adjusted gross margin rate improved 220 bps to 46% driven by net price realization, supply chain productivity and costs savings initiatives.
- EBIT margin grew 180 bps to 21.2%.
- FY2015 Guidance: Net sales: +1.5% to +2% (excluding currency impact); Adjusted gross margin rate: low end of +135 bps to +145 bps; GAAP EPS: $2.22 to $2.34; Adjusted EPS: $4.10 to $4.18.
Aug. 5, 2015, 8:03 AM
Jun. 19, 2015, 1:11 PM
- Confidence in Hershey (HSY -3.5%) is slipping after the company cut guidance earlier today.
- The candy seller is battling soft demand for chocolate in China and a broader global food trend toward protein snacks
- Hershey purchased Shanghai Golden Monkey for $584M in 2013 with an eye on leveraging the local brand with its iconic products, but so far has failed to generate some of the synergies which were forecast.
- HSY is trading close to its 52-week low.
- Previously: Hershey slides after lowering guidance (Jun. 19 2015)
- Previously: Job cuts and productivity plan unveiled at Hershey's (Jun. 19 2015)
Jun. 19, 2015, 7:26 AM
- Hershey (NYSE:HSY) announces it will cut 300 jobs by the end of the year.
- The company says it will take a pretax charge of $100M to $120M to cover the job eliminations.
- A global leadership team is being created by Hershey to tackle growth in emerging markets.
- HSY -2.9% premarket after updating guidance earlier.
Jun. 19, 2015, 7:10 AM
- Hershey (NYSE:HSY) estimates sales will increase 2.5% to 3.5% this year.
- If currency fluctuations are backed out, sales are seen rising 6% to 7%.
- The company's guidance takes into account new acquisitions and chocolate growth in China which is below expectations.
- Full-year EPS is expected to be in a range of $4.10-$4.18 vs. $4.31 consensus.
- HSY -2.99% premarket to $89.50.
Apr. 23, 2015, 8:36 AM
- Hershey (NYSE:HSY) reports net sales rose 4.6% excluding unfavorable foreign currency translation in Q1.
- Segment sales: North America: $1.71B (+2.9%); International & other: $230.8M (+8.5%).
- Adjusted gross margin rate improved 10 bps to 46.6%.
- EBIT margin fell 200 bps to 20.3%.
- FY2015 Guidance: Net sales: +4.5% to +5.5%; Gross margin rate: +155 bps to +165 bps; GAAP EPS: $4.17 to $4.28; Adjusted EPS: $4.30 to $4.38;
- HSY -1.86% premarket.
Mar. 26, 2015, 12:37 PM
- Deutsche Bank thinks 3G Capital will be back in the food sector for a major acquisition faster than some other investment firms anticipate.
- 3G put itself in a stronger position to make a major purchase by not adding debt in the Kraft deal.
- Analyst Eric Katzman sees some food names trading with a premium as the 3G shadow hangs over the sector, while others have downside risk with M&A speculation not making as much sense.
- Premium on: ConAgra (NYSE:CAG), General Mills (NYSE:GIS), Mondelez International (NASDAQ:MDLZ), Pinnacle Foods (NYSE:PF), PepsiCo (NYSE:PEP).
- Premium off: Campbell Soup (NYSE:CPB), Hershey (NYSE:HSY), Hormel (NYSE:HRL), Kellogg (NYSE:K), J.M. Smucker (NYSE:SJM).
- Previously: Investors snapping up food stocks (Mar. 25 2015)
- Previously: Beer fallout from Kraft buyout (Mar. 25 2015)
- Previously: Kraft-Heinz merger has a few ETFs on the move (Mar. 25 2015)
Mar. 6, 2015, 10:46 AM
- Global consumer staples stocks are weaker than market averages as concerns on market pricing and F/X sit in the background.
- The 1.21% gain in the U.S. Dollar Index isn't going unnoticed by traders.
- Notable decliners include General Mills (NYSE:GIS) -1.6%, Colgate-Palmolive (NYSE:CL) -2.0%, Unilever (NYSE:UL) -1.9%, General Mills (GIS) -1.8%, Mondelez International (NASDAQ:MDLZ) -1.9%, Post Holdings (NYSE:POST) -1.8%, Hershey (NYSE:HSY) -1.8%, Coca-Cola (NYSE:KO) -1.2%.
- The Consumer Staples ETF (NYSEARCA:XLP) is down 1.2% versus S&P 500 -0.4%.
- Other staples ETFs: VDC, FXG, RHS, FSTA, PSL, PSCC
Jan. 29, 2015, 7:33 AM
- Hershey (NYSE:HSY) reports seasonal net sales in the North America were in line with expectations.
- The company saw a 3.1 point benefit to sales growth in Q4 from higher prices.
- Foreign exchange translation clipped 80 bps from sales growth.
- Gross margin rate +30 bps to 44.1%, aided by lower input costs.
- Net margin rate +60 bps to 10.1%.
- HSY -2.7% premarket.
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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