The Hershey Company: Q3 Earnings Further Validates Our Bullish Assessment

Nov. 18, 2022 2:12 AM ETThe Hershey Company (HSY)6 Comments
Bela Lakos profile picture
Bela Lakos
702 Followers

Summary

  • Substantial increase in sales, driven by pricing and volumes, along with a dramatic increase in account receivables.
  • Skyrocketing COGS and SM&A expenses, primarily driven by inflationary pressures. We believe these increases are likely to be temporary.
  • Upwards adjusted full year guidance with both sales growth and adjusted EPS growth expected to be in the mid-teens.
  • We maintain our "buy" rating.

Hershey Candy Characters at Hershey Chocolate World

arlutz73

The Hershey Company (NYSE:HSY), together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally.

The firm has recently published strong Q3 results and the aim of our

Chart
Data by YCharts

table income statement

Income statement (Hershey)

table sales by segment

Net sales by segment (Hershey)

table balance sheet

Balance sheet (Hershey)

table guidance

Updated guidance FY2022 (Hershey)

This article was written by

Bela Lakos profile picture
702 Followers
Petroleum engineer with an enthusiasm for investing, accounting and personal finances.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. This article has been co-authored by Mark Lakos.

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