NYSE$HSY

Hershey Co · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Delivered strong double-digit sales and earnings growth with ongoing momentum across business units.

The Hershey Company reported a strong first quarter with double-digit sales and earnings growth. The company raised its full-year financial outlook due to this strong performance and increased visibility into recently acquired businesses.

  • Consolidated net sales increased by 16.1% to $2,666.2 million.
  • Organic, constant currency net sales increased by 11.5%.
  • Reported net income increased by 35.3% to $533.5 million, or $2.57 per share-diluted.
  • Adjusted earnings per share-diluted increased by 31.8% to $2.53.

Headline financials

Total Revenue

$2.67B

Previous: $2.3B+16.1%
EPS (adj)

$2.53

Previous: $1.92+31.8%
Organic Net Sales Growth

11.5%

Previous: 12.9%-10.9%
Capital Expenditures

-$141M

Previous: -$114M-23.2%
Free Cash Flow

$392M

Previous: $281M+39.5%
Net Income

$533M

Previous: $396M+34.8%
Operating Income

$721M

Previous: $553M+30.4%
Gross Profit

$1.25B

Previous: $1.05B+18.7%
Cash & Equivalents

$338M

Previous: $1.13B-70.1%
Total Assets

$10.6B

Previous: $9.04B+17.8%

Revenue & EPS history

Hershey · Revenue · Quarterly

$2.67B

Q1 2022+16.1%vs Q1 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Hershey · $2.36B total across 2 segments · Q3 2021

  • North America
    $2.13B+5.5%
  • International
    $234M+13.9%

Forward guidance

The company is raising its 2022 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

  • Sustained consumer demand
  • Favorable price elasticities across all segments
  • Increased visibility into customer orders
  • Increased visibility into programs of the recently acquired Dot’s and Pretzels businesses
  • Elasticities were stronger than anticipated in the first quarter

Headwinds

  • Consumers’ buying power is further pressured by inflation
  • Fewer government benefits as the year progresses
  • Incremental profit from higher sales is expected to be partially offset by supply chain inflation
  • Higher costs to serve incremental demand
  • Slightly higher adjusted earnings per share growth

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 2022

Historical avgQ1 2022

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro