NYSE$HSY

Hershey Co · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Hershey reported a strong Q4 with continued share gains and volume growth, finishing the year with positive momentum heading into 2021.

Hershey announced net sales and earnings for the fourth quarter and full year ended December 31, 2020. The company delivered a strong quarter with continued share gains and volume growth. Consolidated net sales increased by 5.7%, and adjusted earnings per share increased by 16.4%. The company expects to deliver another year of balanced sales and earnings growth in 2021.

  • Consolidated net sales of $2,185.2 million, an increase of 5.7%.
  • Organic, constant currency net sales increased 6.3%.
  • Reported net income of $291.4 million, or $1.39 per share-diluted, an increase of 41.8%.
  • Adjusted earnings per share-diluted of $1.49, an increase of 16.4%.

Headline financials

Total Revenue

$2.19B

Previous: $2.07B+5.7%
EPS (adj)

$1.49

Previous: $1.28+16.4%
Organic Net Sales Growth

6.3%

Previous: 1.9%+231.6%
Net Income

$291M

Previous: $207M+40.6%
Operating Income

$405M

Previous: $286M+41.6%
Gross Profit

$962M

Previous: $912M+5.5%
Cash & Equivalents

$1.14B

Previous: $493M+131.9%
Total Assets

$9.13B

Previous: $8.14B+12.2%

Revenue & EPS history

Hershey · Revenue · Quarterly

$2.19B

Q4 2020+5.7%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Hershey · $2.19B total across 2 segments · Q4 2020

  • North America
    $1.97B+8.9%
  • International
    $211M-17.3%

Forward guidance

The company's 2021 outlook is provided in the context of greater than usual volatility associated with the COVID-19 pandemic. For 2021, the company expects performance in line with its long-term growth algorithm of 2–4% net sales growth and 6–8% earnings per share growth.

Tailwinds

  • Expects performance in line with its long-term growth algorithm of 2–4% net sales growth and 6–8% earnings per share growth.
  • In the North America segment, the company expects recent performance and momentum to continue into the first quarter of 2021 due to sustained elevated sales of take home and seasonal chocolate, as well as additional marketplace share gains.
  • In the International & Other segment, the company expects stabilizing sales trends across most markets.
  • Sales growth and modest gross margin expansion are expected to enable business reinvestment while resulting in solid adjusted earnings per share growth.

Headwinds

  • Second quarter and second half results are expected to be moderate given strong 2020 performance.
  • The pace and magnitude of recovery remains uncertain in the International & Other segment.
  • Interest expense of approximately $130 million.
  • Capital expenditures of approximately $550 million, driven by key initiatives including the company's ongoing ERP transformation and supply chain initiatives.

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 Q4 2020

Historical avgQ4 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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