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The Hershey Company (NYSE:HSY) touted resilient demand in posting above-consensus Q3 results and pushing full-year estimates higher on Friday.
For the third quarter, the confectionary company reported consolidated net sales of $2.73B, a 15.6% jump from the prior year, and notched $2.17 in adjusted earnings per diluted share. Analysts had expected $2.10 and $2.62B, respectively. The company noted that the strong results came despite a 180 basis point decline in gross margins from 2021 amid persistent “raw material, packaging and logistics inflation, labor investments, and higher supply chain costs.” Pricing and volume gains were credited for offsetting the adverse impacts.
“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,” CEO Michele Buck said. “Marketplace share and gross margin trends improved versus the second quarter, and we have strong momentum exiting the year. Given our performance to date and visibility into the fourth quarter, we are raising our net sales and earnings outlook for the year.”
The Pennsylvania-based candy manufacturer now anticipates $8.20 to $8.27 in earnings per share for the year, up from a previous forecast of $8.05 to $8.20. Additionally, net sales are expected to grow 14% to 15%, up from a previous 12% to 14% guide.
Read more on the details of the results.
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