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Sep 27, 2020
Hershey Q3 2020 Earnings Report
Hershey's financial performance for Q3 2020 showed positive growth, driven by strong sales and effective cost management.
Key Takeaways
Hershey reported a strong third quarter with net sales increasing by 4.0% to $2,219.8 million and adjusted diluted EPS growing by more than 15%. The company experienced confectionery share gains across markets, particularly in the U.S., and saw sequential improvement in international markets and owned retail locations.
Consolidated net sales increased by 4.0% to $2,219.8 million.
Organic, constant currency net sales increased by 3.8%.
Reported net income increased by 39.0% to $447.3 million, or $2.14 per share-diluted.
Adjusted earnings per share-diluted increased by 15.5% to $1.86.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company is reinstating full-year guidance based on current visibility into sales and costs for the balance of the year.
Positive Outlook
- Full-year reported net sales are expected to increase around 1.0%.
- The net impact of acquisitions and divestitures is estimated to be a 0.5 point benefit to net sales growth.
- Full-year reported earnings per share-diluted are expected to be in the range of $6.03 to $6.11, an increase of 10.0% to 12.0% versus 2019.
- Full-year adjusted earnings per share-diluted are expected to be in the range of $6.18 to $6.24, an increase of 7% to 8% versus 2019.
Challenges Ahead
- Full-year reported net sales reflect a 2 point headwind from COVID-19 in our International & Other segment.
- The impact of foreign currency exchange is anticipated to be a 0.5 point headwind based on current exchange rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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