Advertisement
Canada markets closed
  • S&P/TSX

    22,167.03
    +59.95 (+0.27%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CAD/USD

    0.7380
    -0.0007 (-0.09%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • Bitcoin CAD

    95,125.01
    -844.48 (-0.88%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • RUSSELL 2000

    2,124.55
    +10.20 (+0.48%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ

    16,379.46
    -20.06 (-0.12%)
     
  • VOLATILITY

    13.01
    0.00 (0.00%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • CAD/EUR

    0.6838
    -0.0005 (-0.07%)
     

Things to Consider Before Hershey (HSY) Reports Q1 Earnings

The Hershey Company HSY is likely to register top-and bottom-line growth when it reports first-quarter 2023 results on Apr 27. The Zacks Consensus Estimate for revenues is pegged at $2.9 billion, suggesting a rise of 8.8% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the last seven days to $2.67 per share, suggesting growth of 5.5% from the figure reported in the prior-year quarter.

We expect first-quarter net sales to be up 8.3% year over year to $2,886.3 million. The bottom line will likely grow 4.2% to $2.64 a share.

The confectionery products and pantry items company has a trailing four-quarter earnings surprise of 11.3%, on average. Hershey delivered an earnings surprise of 13.5% in the last reported quarter.

Hershey Company (The) Price and EPS Surprise

 

Hershey Company (The) Price and EPS Surprise
Hershey Company (The) Price and EPS Surprise

Hershey Company (The) price-eps-surprise | Hershey Company (The) Quote

 

Things To Consider

Hershey is undertaking pricing initiatives, which have been improving its performance for a while now. The company is on track with undertaking buyouts to augment portfolio strength and boost revenues. In this regard, its Dot’s, Pretzel’s and Lily’s buyouts have been boosting the top line. HSY’s core brands are growing strongly on the back of advertising investments, in-store merchandising and programming and innovation. We believe that the continuation of these factors might have been an upside in the quarter to be reported.

That said, Hershey is battling elevated inflation, continued supply-chain hurdles and macroeconomic volatility. Rising selling, marketing and administrative expenses is also a concern for the company’s performance.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Hershey this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Hershey carries a Zacks Rank #3 and has an Earnings ESP of +0.47%.

Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings this season.

Mondelez International MDLZ currently has an Earnings ESP of +1.06% and a Zacks Rank of 3. MDLZ is expected to register a top-line improvement when it reports first-quarter 2023 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.4 billion, calling for growth of 8.6% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 80 cents suggests a decline of 4.8% from the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 7.5%, on average.

Altria Group MO currently has an Earnings ESP of +1.93% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter 2023 results. The Zacks Consensus Estimate for Altria’s quarterly revenues is pegged at roughly $5 billion, which suggests a rise of 3.6% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for MO’s quarterly EPS of $1.19 suggests a 6.3% increase from the year-ago quarter. Altria has a trailing four-quarter earnings surprise of 0.3%, on average.

Sysco Corporation SYY currently has an Earnings ESP of +3.07% and a Zacks Rank of 3. The company is likely to register a top-and-bottom-line increase when it reports third-quarter fiscal 2023 results. The consensus mark for SYY’s quarterly revenues is pegged at $18.7 million, which suggests a rise of 10.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Sysco’s bottom line has remained unchanged at 92 cents per share in the past 30 days. The consensus estimate indicates a 29.6% improvement from the year-ago quarter’s figure. Sysco has a trailing four-quarter earnings surprise of 7.1%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

ADVERTISEMENT

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Hershey Company (The) (HSY) : Free Stock Analysis Report

Altria Group, Inc. (MO) : Free Stock Analysis Report

Sysco Corporation (SYY) : Free Stock Analysis Report

Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research