Hershey (HSY,$148.01) beats Q2 earnings estimate, but issues lower-than-expected full-year outlook
Hershey’s second quarter earnings beat analysts’ expectations. However, the chocolate maker provided a full-year guidance lower than expected by Wall Street.
The company’s adjusted earnings came in at $1.31 a share for the quarter, ahead of the FactSet consensus estimate of $1.17.
Total revenue increased to $1.77 billion, up from $1.75 billion, and in line with the $1.77 billion that analysts’ estimated (based on FactSet poll).
For the full-year, Hershey now expects earnings of $5.54 to $5.56 a share – compared to the Street expectation of $5.75 a share. Hershey forecasts adjusted earnings increase of +6% to +7% for the year.
The company now projects full-year sales growth of +2%, compared to a prior guidance for an increase of +1% to +3%. FactSet survey is guiding for sales of $7.95 billion, up about 2.1% from 2018.
Momentum Indicator for HSY turns positive, indicating new upward trend
HSY saw its Momentum Indicator move above the 0 level on December 09, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned positive. In of the 81 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for HSY just turned positive on November 21, 2024. Looking at past instances where HSY's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
HSY moved above its 50-day moving average on December 09, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where HSY advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for HSY moved out of overbought territory on December 10, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where HSY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HSY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
HSY broke above its upper Bollinger Band on December 09, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for HSY entered a downward trend on November 25, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.881) is normal, around the industry mean (6.522). P/E Ratio (21.884) is within average values for comparable stocks, (26.887). Projected Growth (PEG Ratio) (3.829) is also within normal values, averaging (2.471). Dividend Yield (0.024) settles around the average of (0.043) among similar stocks. P/S Ratio (3.650) is also within normal values, averaging (66.610).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HSY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a manufacturer of chocolate, candy, chewing gum, non-confectionery products and snack foods
Industry FoodSpecialtyCandy