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Hershey (HSY) Queues Up for Q2 Earnings: What to Expect?
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The Hershey Company (HSY - Free Report) is likely to register a top and bottom-line increase when it reports second-quarter 2022 earnings on Jul 28. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,221 million, which suggests a rise of 11.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the past 30 days to $1.67 per share. The consensus mark indicates 13.6% growth from the year-ago quarter’s reported number. Hershey delivered an earnings beat of 7.9%, on average, in the trailing four quarters.
Hershey Company The Price, Consensus and EPS Surprise
Hershey has been benefiting from its robust pricing actions and gains from buyouts. The net price realization drove HSY’s first-quarter 2022 top line by 6.9 points due to higher list prices across segments. Management stated that it expects pricing to remain strong in the remainder of the year. This bodes well for the quarter under review.
Hershey has been undertaking buyouts to augment portfolio strength and boost revenues. To this end, the acquisition of Dot’s Pretzels LLC (concluded in December 2021) has been a strategic fit for Hershey’s salty snacking portfolio. Additionally, Hershey took over Lily's, a leading better-for-you confectionery brand in June 2021. Contributions from these buyouts are likely to have aided the company’s performance in the quarter under review.
That said, HSY expects supply-chain inflation and increased costs to cater to more demand to persist in 2022. The Russia-Ukraine war has added further complications to the commodity cost and supply-availability structure. Hershey expects increased inflation in 2022 due to escalated raw material, packaging and logistics expenses stemming from a tough geopolitical landscape. Management expects the gross margin to contract 120 to 140 basis points in full-year 2022. These also raise concerns for the quarter under review. Apart from this, Hershey has been grappling with higher selling, marketing and administrative expenses for a while.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Hershey this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Hershey sports a Zacks Rank #1 and has an Earnings ESP of +0.08%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past seven days to $1.47 per share in the past 30 days. The consensus mark for CTVA’s earnings suggests 5% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.8% from the figure reported in the prior-year quarter. CTVA delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Altria (MO - Free Report) currently has an Earnings ESP of +0.27% and a Zacks Rank of 3. The company is likely to register a top-line decline when it reports second-quarter 2022 earnings. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.4 billion, suggesting a decline of 3.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has increased by a penny in the past 30 days to $1.25 per share, suggesting a rise of 1.6% from the figure reported in the prior-year quarter. This tobacco product behemoth has a trailing four-quarter earnings surprise of 1.2%, on average. MO delivered an earnings surprise of 2.8% in the last reported quarter.
Tyson Foods (TSN - Free Report) currently has an Earnings ESP of +5.71% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for TSN’s quarterly revenues is pegged at $13.4 billion, which suggests a jump of 7% from the figure reported in the prior-year quarter.
The consensus mark for Tyson Foods’ quarterly earnings has moved down from $1.92 to $1.88 per share in the past 30 days. The consensus estimate for TSN’s third-quarter earnings suggests a decline of 30.4% from the year-ago quarter’s reported figure. Tyson Foods delivered an earnings beat of 33.3%, on average, in the trailing four quarters.
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Hershey (HSY) Queues Up for Q2 Earnings: What to Expect?
The Hershey Company (HSY - Free Report) is likely to register a top and bottom-line increase when it reports second-quarter 2022 earnings on Jul 28. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,221 million, which suggests a rise of 11.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the past 30 days to $1.67 per share. The consensus mark indicates 13.6% growth from the year-ago quarter’s reported number. Hershey delivered an earnings beat of 7.9%, on average, in the trailing four quarters.
Hershey Company The Price, Consensus and EPS Surprise
Hershey Company The price-consensus-eps-surprise-chart | Hershey Company The Quote
Factors to Note
Hershey has been benefiting from its robust pricing actions and gains from buyouts. The net price realization drove HSY’s first-quarter 2022 top line by 6.9 points due to higher list prices across segments. Management stated that it expects pricing to remain strong in the remainder of the year. This bodes well for the quarter under review.
Hershey has been undertaking buyouts to augment portfolio strength and boost revenues. To this end, the acquisition of Dot’s Pretzels LLC (concluded in December 2021) has been a strategic fit for Hershey’s salty snacking portfolio. Additionally, Hershey took over Lily's, a leading better-for-you confectionery brand in June 2021. Contributions from these buyouts are likely to have aided the company’s performance in the quarter under review.
That said, HSY expects supply-chain inflation and increased costs to cater to more demand to persist in 2022. The Russia-Ukraine war has added further complications to the commodity cost and supply-availability structure. Hershey expects increased inflation in 2022 due to escalated raw material, packaging and logistics expenses stemming from a tough geopolitical landscape. Management expects the gross margin to contract 120 to 140 basis points in full-year 2022. These also raise concerns for the quarter under review. Apart from this, Hershey has been grappling with higher selling, marketing and administrative expenses for a while.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Hershey this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Hershey sports a Zacks Rank #1 and has an Earnings ESP of +0.08%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past seven days to $1.47 per share in the past 30 days. The consensus mark for CTVA’s earnings suggests 5% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.8% from the figure reported in the prior-year quarter. CTVA delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Altria (MO - Free Report) currently has an Earnings ESP of +0.27% and a Zacks Rank of 3. The company is likely to register a top-line decline when it reports second-quarter 2022 earnings. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.4 billion, suggesting a decline of 3.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has increased by a penny in the past 30 days to $1.25 per share, suggesting a rise of 1.6% from the figure reported in the prior-year quarter. This tobacco product behemoth has a trailing four-quarter earnings surprise of 1.2%, on average. MO delivered an earnings surprise of 2.8% in the last reported quarter.
Tyson Foods (TSN - Free Report) currently has an Earnings ESP of +5.71% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for TSN’s quarterly revenues is pegged at $13.4 billion, which suggests a jump of 7% from the figure reported in the prior-year quarter.
The consensus mark for Tyson Foods’ quarterly earnings has moved down from $1.92 to $1.88 per share in the past 30 days. The consensus estimate for TSN’s third-quarter earnings suggests a decline of 30.4% from the year-ago quarter’s reported figure. Tyson Foods delivered an earnings beat of 33.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.