NYSE$HSY

Hershey Co · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced second-quarter 2022 financial results and raised the full-year financial outlook.

Hershey's business momentum continued in the second quarter, with double-digit sales growth in each segment resulting in strong earnings per share performance. The company is raising its financial expectations for the year and investing more heavily in its brands, capabilities and people in the second half to continue this momentum into 2023.

  • Consolidated net sales of $2,372.6 million, an increase of 19.3%.
  • Organic, constant currency net sales increased 14.1%.
  • Reported net income of $315.6 million and $1.53 earnings per share-diluted, an increase of 5.5%.
  • Adjusted earnings per share-diluted of $1.80, an increase of 22.4%.

Headline financials

Total Revenue

$2.37B

Previous: $1.99B+19.3%
EPS (adj)

$1.80

Previous: $1.47+22.4%
Organic Net Sales Growth

14.1%

Previous: 15.5%-9.0%
Capital Expenditures

-$241M

Previous: -$228M-5.9%
Free Cash Flow

$74.6M

Previous: $73.6M+1.3%
Net Income

$316M

Previous: $301M+4.8%
Operating Income

$457M

Previous: $457M-0.0%
Gross Profit

$1B

Previous: $925M+8.1%
Cash & Equivalents

$340M

Previous: $426M-20.3%
Total Assets

$10.6B

Previous: $8.88B+19.2%

Revenue & EPS history

Hershey · Revenue · Quarterly

$2.37B

Q2 2022+19.3%vs Q2 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 Hershey Company is increasing its net sales outlook to reflect continued strength in consumer demand and net price realization. Price elasticities are expected to moderate from the second quarter, but remain favorable to historical levels, as inflation and fewer government benefits are expected to weaken consumers’ buying power. Profit from increased sales growth is expected to more than offset higher supply chain costs, elevated advertising and merchandising levels and increased incentive compensation costs, to deliver higher reported and adjusted earnings per share growth.

Tailwinds

  • Net sales growth 12% - 14%
  • Reported earnings per share growth 9% - 12%
  • Adjusted earnings per share growth 12% - 14%
  • Strength in consumer demand
  • Net price realization

Headwinds

  • Inflation
  • Fewer government benefits
  • Higher supply chain costs
  • Elevated advertising and merchandising levels
  • Increased incentive compensation costs

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 2022

Historical avgQ2 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%

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