NYSE$HSY

Hershey Co · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Hershey's financial performance for Q3 2020 showed positive growth, driven by strong sales and effective cost management.

Hershey reported a strong third quarter with net sales increasing by 4.0% to $2,219.8 million and adjusted diluted EPS growing by more than 15%. The company experienced confectionery share gains across markets, particularly in the U.S., and saw sequential improvement in international markets and owned retail locations.

  • Consolidated net sales increased by 4.0% to $2,219.8 million.
  • Organic, constant currency net sales increased by 3.8%.
  • Reported net income increased by 39.0% to $447.3 million, or $2.14 per share-diluted.
  • Adjusted earnings per share-diluted increased by 15.5% to $1.86.

Headline financials

Total Revenue

$2.22B

Previous: $2.13B+4.0%
EPS (adj)

$1.86

Previous: $1.61+15.5%
Organic Net Sales Growth

3.8%

No prior period
Capital Expenditures

-$292M

Previous: -$237M-23.4%
Free Cash Flow

$155M

Previous: $88.7M+75.0%
Net Income

$447M

Previous: $325M+37.5%
Operating Income

$611M

Previous: $461M+32.7%
Gross Profit

$1.08B

Previous: $943M+14.5%
Cash & Equivalents

$1.21B

No prior period
Total Assets

$9.26B

Previous: $8.46B+9.3%

Revenue & EPS history

Hershey · Revenue · Quarterly

$2.22B

Q3 2020+4%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Hershey · $2.22B total across 2 segments · Q3 2020

  • North America
    $2.01B+6.3%
  • International
    $206M-14.4%

Forward guidance

The company is reinstating full-year guidance based on current visibility into sales and costs for the balance of the year.

Tailwinds

  • Full-year reported net sales are expected to increase around 1.0%.
  • The net impact of acquisitions and divestitures is estimated to be a 0.5 point benefit to net sales growth.
  • Full-year reported earnings per share-diluted are expected to be in the range of $6.03 to $6.11, an increase of 10.0% to 12.0% versus 2019.
  • Full-year adjusted earnings per share-diluted are expected to be in the range of $6.18 to $6.24, an increase of 7% to 8% versus 2019.

Headwinds

  • Full-year reported net sales reflect a 2 point headwind from COVID-19 in our International & Other segment.
  • The impact of foreign currency exchange is anticipated to be a 0.5 point headwind based on current exchange rates.

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 Q3 2020

Historical avgQ3 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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