Hershey Lifts FY22 Earnings Outlook Above Market - Update

(RTTNews) - While reporting weak profit and higher net sales in its third quarter on Friday, Hershey Co. (HSY) raised again its fiscal 2022 earnings forecast above market estimates, and also sales growth view. For fiscal 2022, the company now projects earnings per share of $7.93 to $8.06 and adjusted earnings in the range of $8.20 to $8.27 per share on net sales growth of 14 to 15 percent.

Previously, the company expected adjusted earnings in the range of $8.05 to $8.20 per share on net sales growth of 12 to 14 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $8.18 per share for the year on net sales growth of 13.7 percent to $10.2 billion. Analysts' estimates typically exclude special items.

The revised earnings per share now reflects a growth of 11 percent - 13 percent from last year, compared to previously expected 9 percent - 12 percent increase. Adjusted earnings per share growth is now projected to be 14 percent to 15 percent, compared to previous outlook of 12 percent - 14 percent.

Michele Buck, Hershey President and Chief Executive Officer, said, "Third quarter results came in ahead of our expectations, as our increased brand investments and improved supply chain helped support resilient consumer demand and drove category growth across all business segments. ... Given our performance to date and visibility into the fourth quarter, we are raising our net sales and earnings outlook for the year."