Mixed Results for Hershey as Earnings Beat Expectations but Sales and Guidance Disappoint

  • Hershey reports Q4 earnings beat
  • Shares fall on weak outlook
  • Net income of $349 million, or earnings of $1.70 a share
  • Adjusted earnings were $2.02 a share
  • Fourth-quarter sales were $2.66 billion, an increase of 0.2%
  • North America Confectionery sales increased 2.1%
  • North American salty snack sales fell 24.6%
  • Hershey expects sales of $11.39 billion to $11.5 billion for 2024
  • Adjusted earnings to be flat at $9.59 a share for 2024
  • Dividends increased by 15%
  • Hershey’s stock has fallen 17.4% in the last 52 weeks

Hershey Corp. reported a fourth-quarter earnings beat, but the company’s shares fell due to weaker-than-expected sales and guidance. The company’s net income was $349 million, or earnings of $1.70 a share, compared to $396 million, or earnings of $1.92 a share, in the same quarter last year. Adjusted earnings were $2.02 a share, flat from the previous year. Fourth-quarter sales increased by 0.2% to $2.66 billion, with North America Confectionery sales up 2.1% but North American salty snack sales down 24.6%. Hershey expects sales of $11.39 billion to $11.5 billion for 2024, with adjusted earnings flat at $9.59 a share. Dividends on the company’s common stock and class B common stock increased by 15%. However, Hershey’s stock has fallen 17.4% in the last 52 weeks.

Public Companies: Hershey Corp. (HSY)
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Factuality Level: 8
Justification: The article provides specific financial information about Hershey Corp.’s fourth-quarter earnings, including net income, earnings per share, and sales figures. It also mentions analyst expectations and compares them to the actual results. The article does not contain any irrelevant or misleading information, and there is no sensationalism or opinion masquerading as fact. The reporting is based on factual data and financial information.

Noise Level: 4
Justification: The article provides information on Hershey Corp.’s fourth-quarter earnings, including net income, adjusted earnings, and sales figures. It also mentions the reasons for the decline in shares and provides guidance for 2024. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on financial data and does not explore the consequences of the company’s decisions on stakeholders or hold powerful people accountable.

Financial Relevance: Yes
Financial Markets Impacted: Hershey Corp. (HSY)

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance of Hershey Corp., reporting its fourth-quarter earnings beat but with weaker-than-expected sales and guidance. There is no mention of any extreme event.

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