This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Earnings Preview: The Hershey Co.

Hershey has continued to consolidate this year as part of a strategy to close underperforming plants and concentrate on its most profitable brands.

BY THE NUMBERS: Analysts polled by Thomson Reuters on average expect Hershey to report it earned 67 cents per share in the quarter that ended Oct. 4 on sales of $1.54 billion. In the same period a year earlier, it reported earnings of 64 cents, excluding one-time items, on revenue of $1.49 billion.

ANALYST TAKE: Some analysts see Hershey's higher-than-average price-to-earnings ratio compared to other packaged-food companies as being driven by expectations of a buyout by Cadbury or a larger company, such as Nestle. However, many analysts see that as highly unlikely, given the position of Hershey's majority shareholder, The Hershey Trust Co., against selling its controlling stake.

Sanford C. Bernstein & Co. analyst Alexia Howard of said she sees headwinds for Hershey, including markedly higher promotional prices at Halloween and the winter holidays, which could hurt buying. The discontinuation of Starbucks chocolate and Cacao reserve this month could hurt sales through the third quarter of 2010.

Edward Jones analyst Jack Russo said Hershey has a favorable long-term outlook because it has a portfolio of well-known brands such as Hershey's and Reese's, penetration of faster-growing retail channels and a strong product pipeline that should help it gain market share. In addition, a tough economy is prompting customers to trade down from premium chocolate to Hershey's traditional, more mass-market products, he said.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HSY $93.11 0.00%
TRU $29.95 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs