FX.co ★ Hershey Maintains FY24 Adj. Earnings View Above Market After Higher Q1 Results - Update

Hershey Co. announced an increase in its first-quarter results on Friday, but retained its projected fiscal outlook for 2024, reflecting both revenue growth and earnings. These results raised Hershey shares by about 2.2 percent in pre-market transactions on the New York Stock Exchange (NYSE), nudging them to a trading price of about $200.22.

Hershey's anticipates earnings per share to retain a range of $9.00 to $9.11 for fiscal 2024, similar to the previous year's $9.06. The company maintains an expectation for their adjusted earnings per share to remain at $9.59, consistent with the previous year. Thomson Reuters suggests analysts are predicting an average earnings of $9.57 per share, typically excluding unique or extraordinary factors.

As for net sales, Hershey continues to project a growth of roughly 2 to 3 percent. According to the Hershey President and Chief Executive Officer, Michele Buck, the company has had a robust start. The company remains poised to meet their year's strategic business and financial objectives. Buck emphasized Hershey's ongoing commitment to strategies focused on long-term growth and the creation of sustainable value, despite recent business volatility.

Hershey's earnings for the first quarter exceeded expectations and demonstrated growth from the same period last year. The company's income was at $797.45 million, or $3.89 per share, representing an apparent increase from $587.19 million, or $2.85 per share from last year's first quarter.

Adjusted earnings for the period were $628.29 million or $3.07 per share. Thomson Reuters reports that analysts had forecast the company would earn an average of $2.76 per share, typically excluding unique or extraordinary factors.

Regarding quarterly revenue, Hershey reported a growth of 8.7 percent. This amounts to a rise to $3.25 billion for the quarter from $2.99 billion the previous year.