Hershey Sweetens FY22 Forecast On Q2 Earnings Beat

Hershey Co HSY reported second-quarter FY22 sales growth of 19.3% year-on-year, to $2.37 billion, beating the consensus of $2.22 billion.
Hershey's North America Confectionery segment net sales rose 12.9% Y/Y to $1.91 billion. Sales for Hershey's International and other segments increased 21.3% to $207.2 million.
Gross margin contracted 440 basis points Y/Y to 42.1%, and gross profit rose 8.1% Y/Y to $999 million.
The operating margin contracted 380 basis points to 19.2%, and the operating income for the quarter was $456.5 million.
Adjusted EPS of $1.80 beat the analyst consensus of $1.68.
Hershey held $339.7 million in cash and equivalents as of July 3, 2022.
Dividend: The company's Board of Directors declared a quarterly dividend of $1.036 on the common stock and $0.942 on the Class B common stock, payable September 15, 2022, to shareholders of record as of August 19, 2022.
Outlook: Hershey raised FY22 net sales growth guidance to 12% - 14%, from the previous view of 10% - 12%.
It raised the FY22 adjusted EPS growth outlook to 12% - 14% from the prior view of 10% - 12%.
CEO Michele Buck said, "We are raising our financial expectations for the year and investing more heavily in our brands, capabilities and people in the second half to continue this momentum into 2023."
Price Action: HSY shares traded higher by 1.14% at $220.71 on the last check Thursday.
Photo Via Wikimedia Commons

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