Poor Hershey (HSY). At the time of this writing, the stock was off by 2.8%, coming in at a quote of $49.67. The market wasn't taken by the third-quarter report. Is Wall Street being fair with the shares?

Well, you know how the analyst game works. A forecast is made, and the trick is to beat it. Unfortunately, the company behind the Reese's peanut butter candies and the famous Hershey chocolate bar (of course) merely met expectations. When you do that, you're simply not guaranteed to get a big bid after the earnings release.

Continue reading Hershey Sells Off After Announcing Q3 Results

Hershey Sells Off After Announcing Q3 Results originally appeared on BloggingStocks on Thu, 21 Oct 2010 14:30:00 EST. Please see our terms for use of feeds.

Continue reading Halloween stocks offer investors a chance at financial treats

Halloween stocks offer investors a chance at financial treats originally appeared on BloggingStocks on Fri, 30 Oct 2009 14:40:00 EST. Please see our terms for use of feeds.

On an adjusted basis, Hershey increased per-share profit by 14% to 73 cents. According to Earnings.com, analysts were only expecting 67 cents per share. Hey, what's going on? The Dow and the S&P 500 are in the green, and the NASDAQ is only down slightly. Shouldn't investors be happy with results like these?

Continue reading Hershey's Q3 results give investors an early Halloween fright -- why?

Hershey's Q3 results give investors an early Halloween fright -- why? originally appeared on BloggingStocks on Thu, 22 Oct 2009 15:20:00 EST. Please see our terms for use of feeds.

Steady-as-she-goes, to cite an old Star Trek phrase, regarding The Hershey Company (NYSE: HSY), which is why I'm reiterating my Buy rating for the company, first recommended on April 23, 2009 at a price of $37.45.

Manufacturing savings, new products, and promising opportunities for revenue growth in international markets, along with demonstrated marketing prowess, point to a bright future for HSY. The company's dual-class capital structure with unequal voting rights is problematic, but not enough to change the overall investment evaluation.

Continue reading Hershey still makes the great American chocolate bar

Hershey still makes the great American chocolate bar originally appeared on BloggingStocks on Wed, 19 Aug 2009 18:20:00 EST. Please see our terms for use of feeds.

The Hershey Company (NYSE: HSY) announced Q2 earnings on Thursday. Shareholders of the confection company should definitely appreciate the growth reported. Net sales increased almost 6%. On an adjusted basis, earnings per share went up a whopping 48% to 43 cents.

According to Earnings.com, analysts were expecting only 35 cents per share. Hershey's management went the extra distance on this one. Not only was the magnitude of the beat impressive, but as Reuters points out, Hershey raised its guidance for the full fiscal year, something that is obviously a positive signal to the marketplace.

Continue reading Hershey destroys the analysts in Q2

Hershey destroys the analysts in Q2 originally appeared on BloggingStocks on Fri, 24 Jul 2009 17:20:00 EST. Please see our terms for use of feeds.

Continue reading Hershey delivers sweet profits

Hershey delivers sweet profits originally appeared on BloggingStocks on Thu, 23 Apr 2009 17:00:00 EST. Please see our terms for use of feeds.

Not only did the bottom line fare well, but the top line didn't do so badly, either. It increased well over 6%. Okay, that's not a rocketing growth rate, certainly, but all things considered, I think it was a decent performance. Hershey benefited from pricing strategies and the Easter holiday. If you ask me, I think the recent rally in the markets helped to bolster consumer confidence. That may have helped Hershey sell a lot of its candy. Management seemed pretty pleased with volume trends and the response to its marketing initiatives, judging by comments made in the release.

Continue reading Hershey has solid Q1, but is the stock too strong to buy?

Hershey has solid Q1, but is the stock too strong to buy? originally appeared on BloggingStocks on Thu, 23 Apr 2009 15:00:00 EST. Please see our terms for use of feeds.

Halloween is around the corner, my friends. I love this time of year. And you can bet Hershey (NYSE: HSY) does, too. Will the company sell a lot of candy to all those households who want to give some treats out? Let's hope so, because Hershey needs all the help it can get. It hasn't been growing too well, lately. (I'll be helping out by buying a bag of my favorite, the Reese's Peanut Butter Cup!)

The confectioner reported earnings on Thursday for the third quarter. Sales rose a modest 6% to roughly $1.5 billion. Adjusted earnings per diluted share came in at $0.64. That unfortunately represented a 6% decrease in the bottom line. Furthermore, if you're in the mood for more bad news, adjusted margins dropped across the board during the reporting period. And we can't look to an earnings beat to make things better. According to this article, Hershey managed to only equal analyst expectations, not beat them.

Yet, the stock is up well over 2% as of this writing. As the article pointed out, Hershey is doing okay in terms of market share and outlook. And I'll say this: long-term investors can look at the dividend yield on the stock and the brand equity behind the famous candy maker as positives. I just have to wonder how the stock is going to fare as the consumer continues to become affected by price increases at the supermarket. We all know that Hershey, along with other companies such as Kraft (NYSE: KFT) and Campbell Soup (NYSE: CPB), have found it difficult to spare their consumers the sting of rising costs in a softening economy. Hershey's shares are currently near a 52-week low. My instinct at this time says they'll be going lower still. If you're into dollar-cost-averaging over a long period of time (which would be a good strategy vis a vis this company), then I'd say that you'd be fine here. However, I don't think Hershey will break through to record highs anytime soon.

Disclosure: I don't own any company mentioned; positions can change at any time.

Hershey needs a scary-good Halloween after its Q3 report originally appeared on BloggingStocks on Thu, 16 Oct 2008 14:50:00 EST. Please see our terms for use of feeds.

Sarah Gilbert is a former investment banker, Wharton MBA, and mama of three young boys. She keeps her finger on the pulse of hundreds of like-minded mamas through social media and reports on the mood of the biggest consumer group out there: Moms.

Continue reading Mom on the Street: How melamine-tainted candy will change buyer behavior

Mom on the Street: How melamine-tainted candy will change buyer behavior originally appeared on BloggingStocks on Thu, 25 Sep 2008 20:00:00 EST. Please see our terms for use of feeds.

This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

One might assume that chocolatier Hershey Company (NYSE: HSY) got its name from the small Pennsylvania town it is located in, population 12,771. However, the truth of the matter is that the company is named after its founder, Milton S. Hershey, and that the town, which was formerly known as Derry Church, was renamed Hershey, Pennsylvania, in 1906 because of the popularity of the chocolate.

Milton Hershey built the milk processing plant he would use to make his milk chocolate in 1896 with profits he made from selling his caramel company, and three years later, in 1899, the "Hershey process" was born. In 1903, Hershey began construction of a chocolate plant in what would later become Hershey, Pennsylvania. The manufacturing plant, which now covers over two million square feet of manufacturing space, is now the largest chocolate factory in the world.

Just as important to the town's prosperity as the chocolate manufacturing plant is Hersheypark, an amusement park that is affiliated with the Hershey Company. The theme park is a huge employer for the town, a tourist attraction, and a branding device for the Hershey brand.

Hershey, Pennsylvania is truly a place where the company and the town have merged into a single identity. While there, you can tour Hershey's Chocolate World, Hershey Museum, and visit Hersheypark, all of which feature the history of both the company and the town, which will be forever intertwined.

Be sure to check out more Big Company, Small Town posts.

Big company, small town: The Hershey Co., Hershey, Pennsylvania originally appeared on BloggingStocks on Thu, 26 Jun 2008 10:10:00 EST. Please see our terms for use of feeds.

Hershey (NYSE: HSY) is having growth problems. Not only is it tough just navigating this high-inflationary period, but it's difficult keeping up with the competition. Consumers have a lot of candy choices, and even though Hershey is a big brand name in confections, it thinks it can do better in the marketing department. According to this Wall Street Journal (subscription required) piece, Hershey intends on implementing a 20% increase in spending for promotions.

This double-digit jump in marketing is a smart move, but it won't be easy to digest. With the aforementioned inflationary pressures on the rise, Hershey is going to be sufficiently challenged to push growth while balancing the upward trends in input costs. But is there really a choice here? When you have a super brand like Hershey running into trouble, the thing you need to do is get out there and prop up the inherent equity of the product portfolio.

Yet, there's a bit of a conundrum here, I think. Hershey needs to get people to buy its delicious candies (I'm certainly a fan of the awesome Reese's Peanut Butter Cup). Which demographic loves sweets? Younger kids. They would have represented a great group for growth opportunities, but Hershey has to be careful about marketing too much to this demo since the country has, rightly so, been focusing on healthy alternatives to fatty foods. Even though Hershey has been trying to make some of its portfolio healthier, the flagship brands will always be, one assumes, sugary and full of empty calories. In fact, Hershey is more than aware of this issue, as this corporate link demonstrates.

Continue reading Can Hershey market its way out of trouble?

Can Hershey market its way out of trouble? originally appeared on BloggingStocks on Wed, 18 Jun 2008 09:09:00 EST. Please see our terms for use of feeds.

Hershey raises prices after posting terrible earnings originally appeared on BloggingStocks on Mon, 28 Jan 2008 13:35:00 EST. Please see our terms for use of feeds.

Continue reading Hershey (HSY) earnings not so sweet

Hershey (HSY) earnings not so sweet originally appeared on BloggingStocks on Thu, 18 Oct 2007 11:54:00 EST. Please see our terms for use of feeds.