Factors to Watch Ahead of Hershey's (HSY) Q1 Earnings Release
The Hershey Company HSY is likely to register top-and bottom-line growth when it releases first-quarter 2021 numbers on Apr 29. The Zacks Consensus Estimate for revenues is pegged at approximately $2.1 billion, which suggests growth of 3.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at $1.82 per share, which indicates a rise of 11.7% from the year-ago quarter’s reported figure. Notably, Hershey’s bottom line has outperformed the Zacks Consensus Estimate by 4.2% in the last reported quarter. It has a trailing four-quarter earnings surprise of 6.5%, on average.
Hershey Company The Price and EPS Surprise
Hershey Company The price-eps-surprise | Hershey Company The Quote
Key Factors to Note
Hershey has been benefiting from strength in the North America segment, which gained from improved volumes and pricing in the fourth quarter of 2020. Management, in its last earnings release, highlighted that it anticipates the recent momentum in the North America segment to continue into first-quarter 2021 on the back of increased sales of take home and seasonal chocolate along with added marketplace share gains. Apart from these, Hershey’s focus on strengthening brands through innovation and buyouts is aiding performance. To this end, the company’s acquisition of ONE Brands, LLC (concluded in September 2019) bodes well.
However, the company has been seeing weakness in the International segment for a while now. The segment is bearing the brunt of lower footfall stemming from reduced consumer travel and capacity restrictions imposed by the government amid the pandemic. Also, Hershey is persistently exposed to volatile currency movements owing to its international presence.
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 carries a Zacks Rank #3 and an Earnings ESP of 0.00%.
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.
Tyson Foods, Inc. TSN currently has an Earnings ESP of +16.03% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medifast MED currently has an Earnings ESP of +6.25% and carries a Zacks Rank #3.
Sysco Corporation SYY currently has an Earnings ESP of +5.00% and carries a Zacks Rank #3.
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Hershey Company The (HSY) : Free Stock Analysis Report
Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
Sysco Corporation (SYY) : Free Stock Analysis Report
MEDIFAST INC (MED) : Free Stock Analysis Report
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