Hershey (NYSE:HSY) Posts Quarterly Earnings Results, Misses Expectations By $0.16 EPS

Hershey (NYSE:HSY) released its quarterly earnings results on Thursday. The company reported $2.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.50 by ($0.16), reports. Hershey had a return on equity of 45.36% and a net margin of 16.76%. The company had revenue of $2.99 billion for the quarter, compared to the consensus estimate of $3.07 billion. Hershey updated its FY 2024 guidance to 9.000-9.100 EPS and its FY24 guidance to $9.00-9.10 EPS.

Hershey Trading Up 1.6 %

HSY traded up $2.82 during mid-day trading on Friday, reaching $175.67. The stock had a trading volume of 3,115,302 shares, compared to its average volume of 1,375,510. The stock has a market capitalization of $35.54 billion, a P/E ratio of 19.52, a P/E/G ratio of 4.09 and a beta of 0.38. The company has a debt-to-equity ratio of 0.87, a quick ratio of 0.48 and a current ratio of 0.86. The firm’s fifty day simple moving average is $189.17 and its two-hundred day simple moving average is $192.13. Hershey has a 52 week low of $171.67 and a 52 week high of $211.92.

Hershey Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, November 18th will be given a $1.37 dividend. The ex-dividend date of this dividend is Monday, November 18th. This represents a $5.48 dividend on an annualized basis and a yield of 3.12%. Hershey’s payout ratio is 60.89%.

Wall Street Analysts Forecast Growth

HSY has been the subject of several recent analyst reports. Redburn Atlantic initiated coverage on Hershey in a research note on Tuesday, October 22nd. They set a “sell” rating and a $165.00 target price for the company. Sanford C. Bernstein downgraded Hershey from an “outperform” rating to a “market perform” rating and reduced their price objective for the stock from $230.00 to $205.00 in a research report on Monday, October 7th. JPMorgan Chase & Co. reduced their price objective on Hershey from $188.00 to $180.00 and set a “neutral” rating for the company in a research report on Monday, October 14th. Jefferies Financial Group reduced their price objective on Hershey from $163.00 to $161.00 and set an “underperform” rating for the company in a research report on Thursday, October 31st. Finally, Piper Sandler raised their price objective on Hershey from $165.00 to $168.00 and gave the stock a “neutral” rating in a research report on Friday. Five equities research analysts have rated the stock with a sell rating and fourteen have assigned a hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $190.56.

Insider Transactions at Hershey

In other news, CAO Jennifer Mccalman sold 538 shares of the firm’s stock in a transaction on Monday, August 12th. The stock was sold at an average price of $199.17, for a total value of $107,153.46. Following the transaction, the chief accounting officer now directly owns 3,238 shares in the company, valued at $644,912.46. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in HSY. Ashton Thomas Securities LLC bought a new position in Hershey during the third quarter worth about $25,000. Capital Advisors Ltd. LLC raised its stake in shares of Hershey by 218.2% in the 2nd quarter. Capital Advisors Ltd. LLC now owns 140 shares of the company’s stock valued at $26,000 after purchasing an additional 96 shares during the period. GHP Investment Advisors Inc. raised its stake in shares of Hershey by 55.0% in the 2nd quarter. GHP Investment Advisors Inc. now owns 155 shares of the company’s stock valued at $28,000 after purchasing an additional 55 shares during the period. OFI Invest Asset Management acquired a new stake in shares of Hershey in the 2nd quarter valued at about $29,000. Finally, Crewe Advisors LLC acquired a new stake in shares of Hershey in the 1st quarter valued at about $35,000. 57.96% of the stock is currently owned by institutional investors.

About Hershey

The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; protein bars; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, bars, snack bites, mixes, popcorn, and pretzels.