Hershey Set to Report Sweet Quarter; JP Morgan

Hershey Foods HSY is set to announce 2Q earnings on Thursday, June 22nd. JP Morgan raised EPS estimates to $0.50 from $0.46. Analyst Terry Biven said, "Our most recent Walmart Watch piece (July 1) suggests that Hershey volumes were around 6% in outlets measured by A.C. Nielsen plus Walmart panel data. Additionally, we believe volumes in the high margin convenience store channel may have been 9% or above." Hershey's commodities hedging has been effective. Sugar, cocoa, and milk are all up between 26% and 34%. As hedges roll off, Hershey could face input pressure in 2011, but for right now and the rest of 2010, JP Morgan predicts a favorable environment. Hershey is rated Neutral with a price target of $50.55. Shares of HSY are currently trading at $50.55.