The Hershey Company posted fourth-quarter results, with both earnings and revenue beating the Zacks Consensus Estimate.
The chocolate maker’s adjusted earnings for the quarter grew +13.4% from the year-ago quarter to $2.10 a share, surpassing Zacks Consensus Estimate of $1.69.
Consolidated net sales climbed +6.4% year-over-year to $2,326.1 million, compared to the Zacks Consensus Estimate of $2,265 million. Organic net sales on constant-currency basis rose +4%.
North America Confectionery segment net sales rose +4.9% year over year to $1,982.4 million. Price realization contributed to 4.3 points of growth. Volume led to a 1.1-point headwind due to price elasticity and reduced shipping days. Acquisition of Lily's and foreign exchange added to net sales by 1.5 points and 0.2 points, respectively.
The North America Salty Snacks segment’s net sales increased +38.9% year-over-year to $158.7 million. Price realization contributed 15.9 points, and volume contributed 3.9 points. The acquisitions of Dot's and Pretzels contributed 19.1 points to sales.
International segment’s net sales rose +1.7% year-over-year to $185 million. On constant currency basis, net sales increased +2%. Price realization contributed 19.7 points to sales while volume lent a 17.7-point headwind.
The company projects net sales growth in the band of 8-10% for 2022. It expects adjusted earnings per share to increase 9-11%, and predicts reported earnings per share growth in the 7-10% range. For 2022, adjusted earnings per share are expected to be in the range of $7.84-$7.98.
The RSI Indicator for HSY moved out of oversold territory on May 31, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 13 similar instances when the indicator left oversold territory. In of the 13 cases the stock moved higher. This puts the odds of a move higher at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 54 cases where HSY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HSY advanced for three days, in of 356 cases, the price rose further within the following month. The odds of a continued upward trend are .
HSY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on May 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on HSY as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for HSY turned negative on May 11, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
HSY moved below its 50-day moving average on May 25, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for HSY crossed bearishly below the 50-day moving average on June 01, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over 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 .
The Aroon Indicator for HSY entered a downward trend on June 02, 2023. 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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.
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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (15.420) is normal, around the industry mean (10.020). P/E Ratio (31.664) is within average values for comparable stocks, (34.935). HSY's Projected Growth (PEG Ratio) (4.488) is slightly higher than the industry average of (2.677). Dividend Yield (0.016) settles around the average of (0.056) among similar stocks. P/S Ratio (5.009) is also within normal values, averaging (29.332).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of chocolate, candy, chewing gum, non-confectionery products and snack foods
A.I.dvisor indicates that over the last year, HSY has been loosely correlated with CPB. These tickers have moved in lockstep 64% of the time. This A.I.-generated data suggests there is some statistical probability that if HSY jumps, then CPB could also see price increases.