[ACCESSWIRE]
Upcoming AWS Coverage on Tootsie Roll Industries Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 8, 2016 / Active Wall St. announces its post-earnings coverage on The Hershey Co. (NYSE: HSY). The company released its financial results for the third quarter fiscal 2016 (Q3 FY16) on October 28, 2016. The Hershey, Pennsylvania-based company's quarterly net sales improved 2.2% y-o-y and its adjusted diluted earnings per share grew about 10% y-o-y during the reported period. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Hershey's competitors within the Confectioners space, Tootsie Roll Industries Inc. (NYSE: TR), reported on October 25, 2016, its third-quarter results for 2016. AWS will be initiating a research report on Tootsie Roll Industries in the coming days.
Today, AWS is promoting its earnings coverage on HSY; touching on TR. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=HSY
http://www.activewallst.com/registration-3/?symbol=TR
Earnings Reviewed
During the quarter ended on October 02, 2016, Hershey's reported net sales of $2.00 billion, which came in above $1.96 billion recorded at the end of Q3 FY15. However, net sales numbers for the reported quarter missed market expectations of $2.02 billion. The company's net sales, excluding foreign currency translation headwind of 0.2%, increased 2.4% y-o-y. Furthermore, volume contributed a 1.0% to the net sales growth during the quarter.
The chocolate manufacturer reported Q3 FY16 net income of $227.40 million, or $1.06 per diluted common share, compared to $154.77 million, or $0.70 per diluted common share, in Q3 FY15. The company's non-GAAP net income came in at $277.35 million, or $1.29 per diluted common share, in Q3 FY16 compared to $257.24 million, or $1.17 per diluted common share, in the year ago quarter. Additionally, non-GAAP EPS numbers beat market earnings estimates of $1.18 per diluted common share.
Operating Metrics
In Q3 FY16, the company's gross profit declined to $850.85 million from $892.06 billion in the prior year's quarter. However, non-GAAP gross profit increased to $913.73 million in Q3 FY16 from $901.26 million in Q3 FY15. Furthermore, gross margin for the reported quarter stood at 42.5% of net sales compared to 45.5% of net sales in the year-ago period.
Hershey's Q3 FY16 reported operating income grew to $374.02 million from $303.01 million in Q3 FY15. The company's operating profit margin also improved to 18.7% of net sales in Q3 FY16 from 15.5% of net sales in Q3 FY15.
Segment Performance
During Q3 FY16, Hershey's North American segment's net sales came in at $1.76 billion compared to $1.73 billion in the year ago period. The segment reported a 3.3% y-o-y growth in its operating income during Q3 FY16 to $563.95 million from $546.08 million in Q3 FY15. The increase in the segment's income was primarily driven by an increase in gross profit of about 1.0% and lower advertising and related consumer marketing expense.
Hershey's International and Other segment's sales came in at $238.93 million in Q3 FY16, which was 5.3% more than last year's recorded sales numbers of $226.91 million. The segment's reported operating income of $4.28 million compared to an operating loss of $13.51 million in Q3 FY15.
Cash Flow & Balance Sheet
The company had cash and cash equivalents balance of $333.33 million as on October 02, 2016, compared to $346.53 million at the close of books on December 31, 2015. Furthermore, the company ended the quarter with total long-term debt of $2.36 billion compared to $1.56 billion as on December 31, 2015.
Dividend and Share Repurchase
In a separate press release on October 14, 2016, Hershey’s Board of Directors declared a quarterly cash dividend of $0.618 per share on its common stock and $0.562 per share on the Class B Common Stock. The dividend is payable on December 15, 2016 to all shareowners of record as of November 23, 2016. The company further informed Wall Street that it is the 348th consecutive regular dividend on the Common Stock and the 129th consecutive regular dividend on the Class B Common Stock.
During the first nine months ended October 02, 2016, the company repurchased $420 million of outstanding shares, and Hershey has outstanding shares balance of 215.2 million at the end of Q3 FY16 compared to 220.1 million at the end of quarter a year ago.
Outlook
In its guidance for full FY16, Hershey's expects sales to increase by around 1.0% which includes a net benefit from acquisitions and divestitures of about 0.5%. Furthermore, the company expects diluted adjusted earnings per share to increase by 4% to 5% in FY16, and anticipates it to be in the range of $4.28 to $4.32 versus a previously provided estimate range of $4.24 to $4.28.
Stock Performance
On Monday, the stock closed the trading session at $101.60, climbing 1.60% from its previous closing price of $100.00. A total volume of 1.83 million shares have exchanged hands, which was higher than the 3-month average volume of 1.38 million shares. Hershey's stock price advanced 6.71% in the last month, 10.36% in the past six months, and 20.94% in the previous twelve months. Furthermore, on a year to date basis, the stock gained 15.92%. Shares of the company have a PE ratio of 32.16.
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