Pennsylvania-based The Hershey Company (NYSE: HSY) saw its shares fall short today, on announcing net sales and earnings for the second quarter.
As well, the company updated its net sales outlook to the mid-point of the previously guided range, and slightly raised its reported and adjusted earnings outlook to the top half of the previous range.
The company consolidated net sales of $1,767.2 million, an increase of 0.9%, and reported net income of $312.8 million, or $1.48 per share-diluted, an increase of 37%
Full-year reported net sales are expected to increase around 2%, the mid-point of the previous 1-3% range. Full-year reported earnings per share-diluted are expected to be in the $5.54 to $5.66 range, relatively flat with prior year.
Second-quarter 2019 reported operating profit of $410.1 million increased 29.9% versus the second quarter of 2018, resulting in an operating margin of 23.2%, an increase of 520 basis points driven primarily by gross margin gains. Adjusted operating profit of $370.0 million increased 9.0% versus the second quarter of 2018.
According to CEO Michele Buck, "We are pleased with our second quarter results and the momentum we are seeing behind our key initiatives for this year.
"We continue to deliver differentiated results by growing both top and bottom line while investing in our brands and capabilities. We are on track to deliver our financial commitments for the year driven by accelerated U.S. performance, a strengthened international business and continued operational excellence."
Shares fell 72 cents to $146.04
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