NEW YORK (TheStreet) -- Shares of Hershey Co. (HSY) - Get Hershey Company (HSY) Report are down 3.7% to $92 in pre-market trading after the company said that sales growth in certain international markets has been mixed because of international macroeconomic challenges, and that international sales for the year will grow less than previously expected. As a result, the company lowered its overall guidance for the year, according to the Wall Street Journal.
For the third quarter, Hershey said sales were up 5.8%, the result of higher volume and gains in the U.S.
U.S. sales gained 4.2% on Halloween seasonal growth. The company reported an 18% increase in international sales, though less than estimates.
Hershey now expects net sales to grow around 4.75%, and per-share earnings to grow about 8%. Hershey previously had forecast sales around the low end of its long-term 5% to 7% target, and per-share earnings growth around the low end of its long-term target of 9% to 11%.
TheStreet Ratings team rates HERSHEY CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERSHEY CO (HSY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
- You can view the full analysis from the report here: HSY Ratings Report