NYSE$HSY

Hershey Co · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Net sales and earnings increased due to increased brand investments and improved supply chain.

Hershey reported strong Q3 2022 financial results, exceeding expectations with a 15.6% increase in consolidated net sales and a 3.3% increase in adjusted earnings per share. The company raised its full-year financial outlook, driven by higher consumer demand and favorable price elasticities across segments.

  • Consolidated net sales increased by 15.6% to $2,728.2 million.
  • Organic, constant currency net sales increased by 11.8%.
  • Adjusted earnings per share-diluted increased by 3.3% to $2.17.
  • The company raised its full-year net sales and earnings outlook.

Headline financials

Total Revenue

$2.73B

Previous: $2.36B+15.6%
EPS (adj)

$2.17

Previous: $2.10+3.3%
Organic Net Sales Growth

11.8%

Previous: 4.4%+168.2%
Capital Expenditures

-$360M

Previous: -$347M-3.6%
Free Cash Flow

$39.5M

Previous: $97.5M-59.5%
Net Income

$399M

Previous: $445M-10.2%
Operating Income

$557M

Previous: $575M-3.2%
Gross Profit

$1.11B

Previous: $1.06B+4.4%
Cash & Equivalents

$328M

Previous: $676M-51.5%
Total Assets

$10.8B

Previous: $9.44B+14.8%

Revenue & EPS history

Hershey · Revenue · Quarterly

$2.73B

Q3 2022+15.6%vs Q3 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 growth and earnings-per-share outlook to reflect higher than anticipated consumer demand and favorable price elasticities across segments.

Tailwinds

  • Net sales growth prior guidance 12% - 14%, current guidance 14% - 15%.
  • Reported earnings per share growth prior guidance 9% - 12%, current guidance 11% - 13%.
  • Adjusted earnings per share growth prior guidance 12% - 14%, current guidance 14% - 15%.
  • A reported and adjusted effective tax rate of approximately 14% to 15%, a slight reduction versus the prior outlook, driven by timing and value of renewable energy tax credits.
  • Capital expenditures of approximately $600 million.

Headwinds

  • Other expense, which primarily reflects the write-down of equity investments that qualify for tax credits, of approximately $205 million, higher than the previous outlook to reflect an increased amount of renewable energy tax credits.
  • Interest expense of approximately $135 million to $140 million, reflecting higher interest rates on commercial paper.

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 2022

Historical avgQ3 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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