Jul. 16, 2014, 2:09 PM
- Investors are punishing Hershey (HSY -2.5%) after the company raised prices yesterday and offered a new sales forecast on the low end of its previous guidance.
- Credit Suisse cuts it rating on the candy seller to Neutral from Outperform on its view that valuation has outrun earnings growth.
- Though Nestle and Kraft Foods Group are expected to follow with price hikes of their own, analysts think they will squeeze out a little marketing spin on Hershey's higher prices first.
Jul. 15, 2014, 4:46 PM
- Just in time for Janet Yellen to amend her remarks about no inflation before tomorrow's 2nd day of congressional testimony, Hershey (NYSE:HSY) announces a weighted average price boost of about 8% across its packaged candy and grocery lines, effective today. The increase is intended to help offset the significant jumps in input costs, including raw materials, packaging, fuel, utilities, and transportation.
- Due to the transitional nature of the price increase, Hershey doesn't expect much income statement benefit until 2015.
- The company now sees sales growth to be towards the lower end of its 5-7% target this year. At the same time, commodity costs should grow faster than the previous estimates, leaving expected full year 2014 adjusted EPS to be towards the low end of the long-term 9-11% growth target.
- Q2 sales and earnings however, should be about inline with the previous forecast, with adjusted EPS still expected at $0.75-$0.77.
- Source: Press Release
Jul. 2, 2014, 7:26 AM
- A positive forecast from the Almond Board of California on the 2014-2015 almond crop could provide a benefit to some food sellers, advises Hedgeye's Howard Penney.
- White Wave Foods (WWAV), Hain Celestial (HAIN), and Hershey (HSY) top the list of companies looking for moderate input costs on almonds.
May. 29, 2014, 7:55 AM
May. 23, 2014, 11:05 AM
- Wells Fargo analyst John Baumgartner forecasts a continued drop in milk prices after seeing Class I milk peak earlier in the month.
- The news could be a relief for a number of companies (DF, WWAV, SJM, DF, NSRGY, LWAY, DNKN, MCD, SBUX, GIS, HSY, MJN, ADY) which have faced margin pressure over the escalated cost of wholesale milk products.
- Milk price chart
- Related ETF: MOO
May. 21, 2014, 10:29 AM
- Hershey (HSY -1%) is an active participant at the Corporation Innovation Exchange in Silicon Valley as it continues to monitor potential tech innovations which it could use to boost sales.
- The company already has an initiative in place to explore 3D printing opportunities and is closely watching the biometric technology sector for how it could shape food demand in the future.
Apr. 29, 2014, 6:52 AM
Apr. 24, 2014, 8:13 AM
- Hershey (HSY) gives a mixed read on its business with its Q1 report.
- The company cited soft demand in the Latin America and notes it saw "irregular" purchasing patterns by U.S. consumers in traditional food channels. The penny earnings beat was derived from some successful cost initiatives and productivity gains.
- Volume was a 3.2 percentage benefit to top line growth in Q1, while foreign exchange translation was a 0.8 percentage point headwind.
- HSY -0.2% premarket
Apr. 24, 2014, 7:02 AM
Apr. 24, 2014, 12:05 AM
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Apr. 23, 2014, 5:30 PM
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Feb. 19, 2014, 2:10 PM
- Hershey (HSY +0.5%) reaffirmed its previous guidance on sales, margins, and EPS during a presentation at the Consumer Analyst Group of New York conference. Just holding serve was a decent result with other multinationals struggling with emerging markets.
- A focus by Hershey will be to build its brands (new and old) in global markets.
- Sales growth rates should get a boost from recent acquisitions.
- The company says its board approved a new $250M buyback allowance.
- Presentation webcast
Feb. 14, 2014, 7:55 AM
- Cocoa prices continue to march higher as demand in emerging markets starts to strain global capacity.
- A new forecast from the International Cocoa Organization on production suggest prices could be elevated for years.
- Chocolate sellers will pass on some of their commodity costs to consumers, but face a tough pricing environment in many regions.
- What to watch: Companies can use substitutes for cocoa butter, but in many cases will have to relabel products and face the risk of tarnishing their brands.
- Chart: Cocoa futures
- Related stocks: MDLZ, HSY, NSRGY, ADM, BYCBF
- Related ETFs; NIB
Jan. 30, 2014, 7:21 AM
Jan. 30, 2014, 7:19 AM
- Hershey (HSY) says net sales in the U.S. exceeded expectations in Q4 with the help of a strong holiday season.
- Sales outside of the U.S. and Canada contributed 3.5 percentage points to revenue growth.
- The gross margin rate during the quarter was up 70 bps to 43.8% on some moderating commodity costs.
- The company expects 2014 sales to increase by 5% to 7% on solid volume gains.
Jan. 30, 2014, 7:07 AM
HSY vs. ETF Alternatives
The Hershey Co is engaged in the manufacturing, marketing, selling and distributing chocolate and sugar confectionery products, pantry items, such as baking ingredients, toppings and beverages; and gum and mint refreshment products.
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