Hershey Reports Q4 Earnings Above Street View

Hershey Co HSY reported fourth-quarter FY22 sales growth of 14% year-on-year to $2.65 billion, beating the consensus of $2.58 billion.
Organic, constant currency net sales for the quarter increased 10.7%.
Hershey's North America Confectionery segment net sales rose 9.7% Y/Y to $2.2 billion. Sales for Hershey's International and other segments increased 11.1% to $205.6 million.
Gross margin contracted 30 basis points Y/Y to 43.2%, and gross profit rose 13% Y/Y to $1.14 billion.
Operating margin expanded 20 basis points to 19.9%, and the operating income for the quarter was $526.6 million.
Adjusted EPS of $2.02 beat the analyst consensus of $1.77.
Hershey held $463.8 million in cash and equivalents as of Dec. 31, 2022.
"We expect to deliver another year of strong sales and earnings growth in 2023 as we invest in our amazing portfolio of brands, additional capacity and capabilities," said Chairman and CEO Michele Buck.
Outlook: Hershey sees FY23 sales growth of 6% - 8%. It expects adjusted EPS of $9.29 - $9.46, above the consensus of $8.94.
Price Action: HSY shares are trading higher by 2.36% at $230.62 on the last check Thursday.

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