NYSE$HSY

Hershey Co · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Net sales and earnings increased slightly, but operating profit decreased due to derivative losses and higher expenses. Full-year guidance was withdrawn due to COVID-19 uncertainty.

Hershey reported a slight increase in net sales for the first quarter of 2020, but experienced a decrease in net income and operating profit due to derivative mark-to-market losses and increased expenses. The company withdrew its full-year financial guidance due to the uncertainty surrounding the COVID-19 pandemic.

  • Consolidated net sales increased by 1.0% to $2,037.3 million.
  • Reported net income decreased by 11.0% to $271.1 million, or $1.29 per share-diluted.
  • Adjusted earnings per share-diluted increased by 2.5% to $1.63.
  • The company withdrew its fiscal 2020 full-year guidance due to the uncertainty of the COVID-19 pandemic.

Headline financials

Total Revenue

$2.04B

Previous: $2.02B+1.0%
EPS (adj)

$1.63

Previous: $1.59+2.5%
Organic Net Sales Growth

0.5%

No prior period
Capital Expenditures

-$99.2M

Previous: -$92.8M-6.9%
Free Cash Flow

$172M

Previous: $212M-18.7%
Net Income

$271M

Previous: $304M-10.9%
Operating Income

$383M

Previous: $439M-12.8%
Gross Profit

$867M

Previous: $893M-2.9%
Cash & Equivalents

$1.09B

Previous: $466M+135.0%
Total Assets

$8.86B

Previous: $7.86B+12.7%

Revenue & EPS history

Hershey · Revenue · Quarterly

$2.04B

Q1 2020+1%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Hershey · $2.04B total across 2 segments · Q1 2020

  • North America
    $1.84B
  • International
    $192M

Forward guidance

Due to the rapidly evolving situation and the high degree of uncertainty, the company does not believe that it can estimate the full financial impacts with reasonable accuracy, and therefore believes it is prudent to withdraw fiscal 2020 full-year guidance at this time. The company believes it has sufficient liquidity to satisfy its cash needs, as supported by access to bank lines of credit and an unsecured revolving credit facility. The company reaffirms its long-term financial objectives of net sales growth in the range of 2% to 4% and an increase in earnings per share of 6% to 8%.

Tailwinds

  • Company believes it has sufficient liquidity to satisfy its cash needs.
  • Access to bank lines of credit.
  • Access to an unsecured revolving credit facility.
  • Reaffirms its long-term financial objectives of net sales growth in the range of 2% to 4%.
  • Reaffirms an increase in earnings per share of 6% to 8%.

Headwinds

  • The length and severity of the pandemic and associated changes to consumer behaviors remain uncertain.
  • Retail foot traffic and takeaway have been volatile.
  • Consumer shopping and consumption behaviors are evolving in light of social distancing protocols.
  • Company does not believe that it can estimate the full financial impacts with reasonable accuracy.
  • Company withdraws fiscal 2020 full-year guidance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.3%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.0%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+9.0%

Q4 2025

Best reaction

-6.7%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%-2.2%+2.8%
Q4 2025+9.0%+11.3%+9.3%
Q3 2025-2.4%-5.3%+7.3%
Q2 2025+1.4%+2.2%-1.3%
Q1 2025-0.0%+1.7%-3.9%
Q4 2024+4.4%+8.5%+26.8%
Q3 2024-0.7%+2.6%-1.2%
Q1 2024+0.3%+2.1%+1.0%
Q3 2023-5.3%-3.7%-1.4%
Q2 2023-2.0%-4.1%-9.6%
Q1 2023+4.3%+4.8%-1.5%
Q4 2022+4.9%+5.2%+5.8%
Q3 2022-1.2%-0.6%+1.1%
Q2 2022+4.5%+5.0%+4.8%
Q1 2022+1.6%-1.0%-4.3%
Q4 2021+2.1%+4.3%+7.2%
Q3 2021-2.3%-2.2%-0.9%
Q2 2021+1.3%+1.9%-0.5%
Q1 2021+3.4%+5.1%+8.9%
Q4 2020+0.0%+2.1%+2.6%
Q3 2020+3.5%+6.3%+4.3%
Q2 2020+5.2%+5.3%+6.5%
Q1 2020-5.3%-6.3%-9.1%
Q4 2019+2.7%+0.9%-4.7%
Q3 2019-4.3%-4.0%-1.9%
Q2 2019+4.2%+3.7%+7.0%
Q1 2019+6.9%+6.6%+11.2%
Q4 2018-0.8%+0.5%+6.3%
Q3 2018-5.2%-0.1%-1.8%
Q2 2018+4.5%+5.8%+7.5%
Q1 2018-0.2%-2.4%-1.6%
Q4 2017-6.7%-8.2%-10.4%
Q3 2017-4.2%-2.2%-1.1%
Q2 2017-0.9%-2.0%-2.1%
Q1 2017-1.0%-1.3%+6.9%
Q4 2016+1.7%+1.3%+2.9%
Q3 2016+7.3%+6.6%+2.3%
Q2 2016+2.4%+3.7%+2.5%
Q1 2016-0.5%
Q4 2015+4.4%
Q3 2015-5.7%
Q2 2015-0.4%
Q1 2015-3.8%
Q4 2014-5.1%
Q3 2014-0.7%
Q2 2014-1.6%
Q1 2014-3.8%
Q4 2013+2.8%
Q3 2013+0.3%
Q2 2013+1.7%
Q1 2013-2.0%
Q4 2012+0.4%
Q3 2012+0.6%
Q2 2012+0.2%
Q1 2012+1.4%
Q4 2011+0.3%
Q3 2011-1.5%
Q2 2011-0.8%
Q1 2011+1.6%
Q4 2010+2.7%
Q3 2010-0.4%
Q2 2010-0.6%
Q1 2009-0.6%
Q1 2010+0.4%
Q2 2008+0.3%
Q3 2009+0.3%
Q3 2008+0.3%
Q2 2009+1.5%

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