Hershey today (3 February) reported underlying fourth-quarter earnings – and issued a forecast for its 2017 adjusted EPS – above Wall Street estimates.

The US-based confectionery and snacks maker posted non-GAAP diluted earnings per share of US$1.17 for the three months to 31 December, up from $1.08 a year earlier and above the $1.08 analysts believe the company would again book.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Hershey’s forecast for its 2017 non-GAAP diluted earnings per share was a range of $4.72 to $4.81, above the $4.64 consensus analyst forecast and which would equate to a 7-9% rise in 2016.

The Kisses maker’s net sales growth accelerated in the fourth quarter, growing 3.2% to $1.97bn. Exchange rates trimmed 0.5 percentage points off the result, although Hershey’s top line received a 0.9 point boost from acquisitions.

The fourth-quarter net sales contributed to a year in which Hershey’s net sales inched up 0.7% to $7.44bn. Hershey forecast its net sales would rise 2-3% in 2017.

See Also:

Fourth-quarter reported operating profit stood at $229.5m, versus $366.4m in the fourth quarter of 2016. Adjusted operating profit, which excluded factors like mark-to-market derivatives, charges from “business realignment activities” and the cost of integrating acquisitions, reached $378.4m, down from $380.4m in the fourth quarter of 2015.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In 2016, Hershey’s business-realignment programme included moves to “optimise” its production and supply chain, which will lead to factory “consolidations”, as well as a decision to merge its operations in China into one unit. 

Hershey’s annual reported operating profit increased 16.2% to $1.21bn. On adjusted basis, it was up 2.4% at $1.51bn.

The Reese’s owner booked fourth-quarter reported net income of $116.9m, against $227.9m a year earlier. Adjusted net income rose year-on-year from $237m in the fourth quarter of 2015 to $249.7m.

Full-year reported net income was $720m, compared to $513m in 2015.