Hershey (HSY) Gears Up to Report Q2 Earnings: What to Expect

The Hershey Company HSY is likely to register an improvement in the top and bottom lines when it reports second-quarter 2021 numbers on Jul 29.

The Zacks Consensus Estimate for quarterly earnings, which has increased a penny in the past 30 days to $1.41 per share, suggests 7.6% growth from the year-ago reported figure. The manufacturer and seller of confectionery products and pantry items has a trailing four-quarter earnings surprise of 9%, on average. In the last reported quarter, the bottom line outperformed the Zacks Consensus Estimate by 6.1%.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $1,838 million, which suggests growth of 7.6% from the figure reported in the prior-year quarter.

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 Note

Hershey has been seeing a rebound in the away-from-home business including food service and specialty. Management, during its first-quarter 2021 earnings call, highlighted that greater-than-anticipated consumer mobility, and increased distribution and merchandising opportunities in North America confection have been driving growth.

Hershey’s focus on buyouts to augment portfolio and fuel revenues has been yielding. The company’s strategic pricing initiatives have also seen an improvement. In addition, the company has been on track with solid innovations to meet consumer demand. Such robust trends are likely to get reflected in its second-quarter 2021 performance.

Yet, Hershey has been grappling with raw material and packaging cost inflation along with higher supply-chain costs. Increased selling, marketing and administrative costs may have also been a concern for the company. In the last earnings call, management highlighted that it expects a significant rise in advertising during the second quarter, thanks to lapping of deflated base in the year-ago period stemming from the coronavirus outbreak.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict 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 currently carries a Zacks Rank #3 and has an Earnings ESP of -2.13%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Tyson Foods, Inc. TSN currently has an Earnings ESP of +9.03% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medifast MED currently has an Earnings ESP of +7.27% and carries a Zacks Rank #2.

B&G Foods, Inc. BGS currently has an Earnings ESP of +6.82% and a Zacks Rank of 3.

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Hershey Company The (HSY): Free Stock Analysis Report

Tyson Foods, Inc. (TSN): Free Stock Analysis Report

B&G Foods, Inc. (BGS): Free Stock Analysis Report

MEDIFAST INC (MED): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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