Hershey's Beat On Q3 Earnings, Expects Sweetened Holiday Season, Boosts Annual Guidance

Hershey Co HSY has reported Q3 sales of $2.73 billion, an increase of 15.6%, beating the consensus of $2.61 billion, including a 4.1-point benefit from the acquisitions of Pretzels and Dot's.
Organic, constant currency sales increased by 11.8%.
The company reported adjusted EPS of $2.17, beating the consensus of $2.10.
Hershey said its overall average selling prices increased by 7.7% in the third quarter while volumes rose 4.1%.
Reuters reported that Halloween is Hershey's busiest time of the year, making up about 10% of its annual revenue, with sales benefiting for months before the October holiday as retailers place early orders to stock up on Twizzlers, Jolly Ranchers, and Kit Kat bars.
Adjusted gross margin was 42.5%, a decrease of 180 basis points due to higher raw materials and supply chain costs.
Guidance: Hershey raised its full-year net sales expecting strong demand into the Christmas season despite higher selling prices.
The company expects full-year 2022 net sales to grow between 14%-15%, compared to the previous forecast of 12% to 14% growth.
It forecasts a 14% to 15% rise in its 2022 adjusted profit per share, above the previous 12% to 14% increase.
Price Action: HSY shares are up 1.68% at $236.00 during the premarket session on the last check Friday.