Hershey's Mixed Bag: Stable Q4 Earnings Amid Slow Sales Growth And Rising Cocoa Costs
Portfolio Pulse from Akanksha Bakshi
Hershey Company (NYSE:HSY) reported a slight increase in Q4 fiscal 2023 sales to $2.66 billion, missing expectations. Adjusted EPS was flat YoY at $2.02, beating consensus. Gross and operating margins contracted, with a notable decline in operating income. Sales in North America Confectionery rose, while Salty Snacks fell sharply, and International segment sales increased. Hershey announced a 15% dividend increase and expects 2%-3% sales growth in 2024 with flat adjusted EPS. HSY shares rose 5.56% to $205.07.
February 08, 2024 | 4:24 pm
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Hershey reported mixed Q4 results with slight sales growth and flat adjusted EPS, but announced a 15% dividend increase and expects modest sales growth in 2024.
Despite missing sales expectations and experiencing margin contraction, Hershey's stock price increase and dividend raise signal investor confidence. The optimistic sales outlook for 2024, despite flat EPS expectations, suggests a positive market sentiment towards Hershey's long-term strategy and brand investments.
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