NYSE$HSY

Hershey Co · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Hershey's financial performance decreased slightly due to COVID-19 pressures and currency headwinds, but was offset by price realization and acquisition benefits.

Hershey reported a slight decrease in net sales for Q2 2020, primarily due to COVID-19 related pressures in international markets and currency headwinds. However, strong performance in North America, driven by price realization and market share gains, along with effective cost management, helped to offset these challenges, resulting in adjusted earnings per share in line with the previous year.

  • Consolidated net sales decreased by 3.4% to $1,707.3 million.
  • Organic, constant currency net sales decreased by 3.5%.
  • Reported net income decreased by 12.8% to $268.9 million, or $1.29 per share-diluted.
  • Adjusted earnings per share-diluted remained flat at $1.31.

Headline financials

Total Revenue

$1.71B

Previous: $1.77B-3.4%
EPS (adj)

$1.31

Previous: $1.31+0.0%
Organic Net Sales Growth

-3.5%

No prior period
Capital Expenditures

-$186M

Previous: -$176M-5.4%
Free Cash Flow

$83.1M

Previous: $137M-39.1%
Net Income

$269M

Previous: $313M-14.0%
Operating Income

$383M

Previous: $410M-6.5%
Gross Profit

$793M

Previous: $875M-9.4%
Cash & Equivalents

$1.17B

Previous: $366M+218.4%
Total Assets

$8.91B

Previous: $7.79B+14.3%

Revenue & EPS history

Hershey · Revenue · Quarterly

$1.71B

Q2 2020-3.4%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Hershey · $1.71B total across 2 segments · Q2 2020

  • North America
    $1.58B
  • International
    $124M-38.0%

Forward guidance

The company expects accelerated sales growth in the second half of the year based on momentum exiting the second quarter, assuming no significant disruption to current consumer trends. The company also expects pricing and cost management to drive margin expansion in the second half of the year.

Tailwinds

  • Stronger second half sales growth driven by continued elevated at-home consumption
  • Price realization
  • Replenishment of retailer and distributor inventory levels
  • Recovering sales in food service and specialty retail channels
  • Pricing and cost management to drive margin expansion

Headwinds

  • Impact of recent spikes in coronavirus cases on consumer mobility
  • Impact of recent spikes in coronavirus cases on retail operations
  • Impact of recent spikes in coronavirus cases on government regulations
  • Impact of recent spikes in coronavirus cases on the macroeconomic environment
  • Slower recovery in the International and Other segment given current trends

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 Q2 2020

Historical avgQ2 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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