NYSE$HSY

Hershey Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Hershey experienced double-digit sales and earnings growth, driven by broad-based portfolio growth and increased consumer optimism.

Hershey reported strong first-quarter results with double-digit sales and earnings growth, leading to an increased full-year financial outlook. The company's performance was driven by continued momentum in North America and recovery in international markets.

  • Consolidated net sales increased by 12.7% to $2,295.9 million.
  • Organic, constant currency net sales increased by 12.9%.
  • Reported net income increased by 47.3% to $395.8 million, or $1.90 per share-diluted.
  • Adjusted earnings per share-diluted increased by 17.8% to $1.92.

Headline financials

Total Revenue

$2.3B

Previous: $2.04B+12.7%
EPS (adj)

$1.92

Previous: $1.63+17.8%
Organic Net Sales Growth

12.9%

Previous: 0.5%+2480.0%
Capital Expenditures

-$114M

Previous: -$99.2M-15.4%
Free Cash Flow

$281M

Previous: $172M+63.6%
Net Income

$396M

Previous: $271M+46.0%
Operating Income

$553M

Previous: $383M+44.5%
Gross Profit

$1.05B

Previous: $867M+21.0%
Cash & Equivalents

$1.13B

Previous: $1.09B+3.4%
Total Assets

$9.04B

Previous: $8.86B+2.1%

Revenue & EPS history

Hershey · Revenue · Quarterly

$2.3B

Q1 2021+12.7%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Hershey · $2.3B total across 2 segments · Q1 2021

  • North America
    $2.08B+12.8%
  • International
    $214M+11.2%

Forward guidance

The company updated its 2021 net sales and earnings per share outlook to reflect the strength of its performance in the first quarter and expectations for the balance of the year.

Tailwinds

  • Full-year net sales growth is now expected to be in the range of 4% to 6%, an increase from the previously communicated range of 2% to 4%.
  • Full-year reported earnings per share are now expected to be in the range of $6.64 to $6.86, an increase of approximately 9% to 12% from $6.11 in fiscal 2020.
  • Full-year adjusted earnings per share are now expected to be in the range of $6.79 to $6.92, an increase of 8% to 10% from $6.29 in fiscal 2020, and an increase from the previously communicated range of 6% to 8%.
  • Stronger than anticipated consumer mobility.
  • Incremental distribution and merchandising opportunities in North America confection.

Headwinds

  • Higher input costs.
  • Incentive compensation.
  • Raw material and packaging cost inflation.
  • Increased supply chain costs related to higher than anticipated demand.
  • One-time incentives for manufacturing employees.

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 2021

Historical avgQ1 2021

+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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