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Hershey (HSY) to Report Q1 Earnings: Key Factors to Note
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The Hershey Company (HSY - Free Report) is slated to report first-quarter 2020 results on Apr 23. This renowned chocolate manufacturer delivered a positive earnings surprise of 3.2% in the last reported quarter. Further, it has a trailing four-quarter positive earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for first-quarter earnings has moved up by a couple of cents to $1.68 in the past 30 days. The bottom line suggests an increase of 5.7% from the year-ago quarter’s reported figure. Moreover, the consensus mark for revenues is pegged at $2,066 million that indicates growth of 2.5% from the figure reported in the year-ago quarter.
We note that the novel coronavirus outbreak compelled Hershey to temporarily close its Chocolate World locations in Hershey, Pa., and Times Square, New York City. The shutdown, which was scheduled to last for two weeks, took effect from the closing time on Mar 15.
Hershey has been benefiting from constant innovation and product launches to cater to evolving consumer demand. Further, buyouts have been augmenting Hershey’s top line. To this end, the acquisition of Pirate Brands has been bolstering the company’s snacks business. Also, the Amplify Snack Brands, which was acquired in January 2018, has been aiding performance. Notably, the net impact from buyouts and divestitures boosted sales growth by 2.2 points during the fourth quarter of 2019.
However, volatile foreign currency movements have been a concern for the company. Apart from this, any rise in selling, marketing and administrative expenses is a threat, though Hershey’s efficient pricing strategy and Margin for Growth initiative bode well. In its last earnings call, management stated that it expects improved pricing in the first-half of 2020.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Hershey this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hershey carries a Zacks Rank #3 and has an Earnings ESP of +1.98%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
The Clorox Company (CLX - Free Report) currently has an Earnings ESP of +2.56% and a Zacks Rank #1.
Flowers Foods (FLO - Free Report) currently has an Earnings ESP of +7.77% and a Zacks Rank of 2.
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Hershey (HSY) to Report Q1 Earnings: Key Factors to Note
The Hershey Company (HSY - Free Report) is slated to report first-quarter 2020 results on Apr 23. This renowned chocolate manufacturer delivered a positive earnings surprise of 3.2% in the last reported quarter. Further, it has a trailing four-quarter positive earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for first-quarter earnings has moved up by a couple of cents to $1.68 in the past 30 days. The bottom line suggests an increase of 5.7% from the year-ago quarter’s reported figure. Moreover, the consensus mark for revenues is pegged at $2,066 million that indicates growth of 2.5% from the figure reported in the year-ago quarter.
We note that the novel coronavirus outbreak compelled Hershey to temporarily close its Chocolate World locations in Hershey, Pa., and Times Square, New York City. The shutdown, which was scheduled to last for two weeks, took effect from the closing time on Mar 15.
Hershey Company (The) Price and EPS Surprise
Hershey Company (The) price-eps-surprise | Hershey Company (The) Quote
Key Factors to Note
Hershey has been benefiting from constant innovation and product launches to cater to evolving consumer demand. Further, buyouts have been augmenting Hershey’s top line. To this end, the acquisition of Pirate Brands has been bolstering the company’s snacks business. Also, the Amplify Snack Brands, which was acquired in January 2018, has been aiding performance. Notably, the net impact from buyouts and divestitures boosted sales growth by 2.2 points during the fourth quarter of 2019.
However, volatile foreign currency movements have been a concern for the company. Apart from this, any rise in selling, marketing and administrative expenses is a threat, though Hershey’s efficient pricing strategy and Margin for Growth initiative bode well. In its last earnings call, management stated that it expects improved pricing in the first-half of 2020.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Hershey this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hershey carries a Zacks Rank #3 and has an Earnings ESP of +1.98%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Campbell Soup Company (CPB - Free Report) has an Earnings ESP of +27.50% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Clorox Company (CLX - Free Report) currently has an Earnings ESP of +2.56% and a Zacks Rank #1.
Flowers Foods (FLO - Free Report) currently has an Earnings ESP of +7.77% and a Zacks Rank of 2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>