NYSE$HSY

Hershey Co · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Hershey's financial performance remained strong in Q3 2021, with net sales and earnings exceeding expectations, leading to an increased full-year outlook.

Hershey reported a 6.3% increase in consolidated net sales, reaching $2,359.8 million. Reported net income was $444.9 million, or $2.14 per share-diluted, matching the prior period. The company raised its full-year net sales and earnings outlook due to robust consumer demand and optimized brand investment.

  • Consolidated net sales increased by 6.3% to $2,359.8 million.
  • Organic, constant currency net sales increased by 4.4%.
  • Reported net income was $444.9 million, or $2.14 per share-diluted, in line with the prior period.
  • Adjusted earnings per share-diluted increased by 12.9% to $2.10.

Headline financials

Total Revenue

$2.36B

Previous: $2.22B+6.3%
EPS (adj)

$2.10

Previous: $1.86+12.9%
Organic Net Sales Growth

4.4%

Previous: 3.8%+15.8%
Capital Expenditures

-$347M

Previous: -$292M-19.0%
Free Cash Flow

$97.5M

Previous: $155M-37.2%
Net Income

$445M

Previous: $447M-0.5%
Operating Income

$575M

Previous: $611M-6.0%
Gross Profit

$1.06B

Previous: $1.08B-1.7%
Cash & Equivalents

$676M

Previous: $1.21B-44.0%
Total Assets

$9.44B

Previous: $9.26B+2.0%

Revenue & EPS history

Hershey · Revenue · Quarterly

$2.36B

Q3 2021+6.3%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
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 updated its 2021 net sales and earnings outlook, expecting net sales growth in the range of 8% to 9% and adjusted earnings per share in the range of $6.98 to $7.11.

Tailwinds

  • Full-year net sales growth is now expected to be in the range of 8% to 9%.
  • Full-year reported earnings per share are now expected to be in the range of $6.88 to $7.04.
  • Full-year adjusted earnings per share are now expected to be in the range of $6.98 to $7.11.
  • Reported and adjusted effective tax rate in the range of 15% to 16%.
  • Capital expenditures of approximately $500 to $525 million.

Headwinds

  • Other expense, which primarily reflects the write-down of equity investments that qualify for tax credits, remains approximately $125 million for 2021.
  • Gross margin decreased 140 basis points in the third quarter of 2021 driven by logistics, labor and packaging costs along with unfavorable product mix.
  • Industry-wide supply chain challenges, against a backdrop of sustained demand, resulted in higher logistics, labor and packaging costs.
  • Unfavorable mix also contributed to lower margins versus the prior year period.
  • Hershey’s CMG share declined approximately 100 basis points.

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 2021

Historical avgQ3 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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