Hershey (HSY) Q3 Earnings Upcoming: Here's All You Should Note
The Hershey Company HSY is likely to register top-line growth when it reports third-quarter 2022 earnings on Nov 4. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,619 million, suggesting a rise of almost 11% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at $2.07 per share, indicating a 1.4% drop from the figure reported in the prior-year quarter. The confectionary products and pantry items company has a trailing four-quarter earnings surprise of 8.7%, on average. Hershey delivered an earnings surprise of 6.5% in the last reported quarter.
Things To Consider
Hershey is undertaking buyouts to augment portfolio strength and boost revenues. In this regard, the company’s Dot’s and Pretzel’s buyouts (concluded in December 2021) and the Lily’s acquisition (concluded in June 2021) have been boosting the top line. The company has been undertaking strategic pricing initiatives, which are improving its performance. Focus on undertaking consumer-friendly innovations bodes well. The continuation of such upsides bodes well for the quarter under review.
Hershey Company The Price and EPS Surprise
Hershey Company The price-eps-surprise | Hershey Company The Quote
That being said, Hershey has been battling adverse impacts from broad-based cost inflation, supply chain disruptions and changes in consumer behavior stemming from the present macroeconomic landscape. The persistence of such trends is likely to have put pressure on the company’s profits in the third quarter of 2022. Apart from this, Hershey has been grappling with higher selling, marketing and administrative expenses for a while.
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 currently carries a Zacks Rank #3 and has an Earnings ESP of +2.02%.
Other Stocks With Favorable Combinations
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Kellogg Company K currently has an Earnings ESP of +1.35% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, calling for growth of nearly 4% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 96 cents suggests an 11.9% decline from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 13.3%, on average.
Campbell Soup Company CPB currently has an Earnings ESP of +4.30% and a Zacks Rank #3. The company is expected to register a decrease in the bottom line when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of 84 cents suggests a dip of 5.6% from the year-ago quarter.
Campbell Soup’s top line is anticipated to have increased year over year. The consensus mark for CPB’s revenues is pegged at $2.42 billion, indicating an increase of 8.1% from the figure reported in the year-ago quarter. CPB has a trailing four-quarter earnings surprise of 6.5%, on average.
The J. M. Smucker Company SJM currently has an Earnings ESP of +1.06% and a Zacks Rank #3. The company is expected to register a decrease in the bottom line when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $2.17 suggests a dip of 10.7% from the year-ago quarter.
Smucker’s top line is anticipated to have increased year over year. The consensus mark for SJM’s revenues is pegged at $2.16 billion, indicating an increase of 5.2% from the figure reported in the year-ago quarter. Smucker has a trailing four-quarter earnings surprise of 20.8%, on average.
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