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The Hershey Company Appoints New President and CEO

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Dec. 22 2016, Updated 5:35 p.m. ET

Price movement

The Hershey Company (HSY) has a market cap of $21.8 billion. It rose 0.55% to close at $103.17 per share on December 21, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 3.2%, 5.5%, and 18.5%, respectively, on the same day. HSY is trading 4.2% above its 20-day moving average, 5.1% above its 50-day moving average, and 5.7% above its 200-day moving average.

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Related ETF and peers

The iShares MSCI USA Quality Factor ETF (QUAL) invests 0.63% of its holdings in Hershey. The YTD price movement of QUAL was 8.6% on December 21. The market caps of Hershey’ competitors are as follows:

  • Mondelēz International (MDLZ) — $69.8 billion
  • General Mills (GIS) — $37.4 billion

Latest news on Hershey

Michele Buck has been appointed as Hershey’s president and CEO, effective March 1, 2017. Currently, Buck is working as the company’s executive vice president and chief operating officer.

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Performance of Hershey in fiscal 3Q16

Hershey (HSY) reported fiscal 3Q16 net sales of $2.0 billion, a rise of 2.0% over the net sales of $1.96 billion in fiscal 3Q15. Sales from the North America and International & Other segments rose 1.8% and 5.3%, respectively, between fiscal 3Q15 and fiscal 3Q16. The company’s gross profit margin contracted 300 basis points, and its operating margin expanded 320 basis points.

Its net income and EPS (earnings per share) rose to $227.4 million and $1.06, respectively, in fiscal 3Q16, compared with $154.8 million and $0.70, respectively, in fiscal 3Q15. It reported non-GAAP[1. generally accepted accounting principles] EPS of $1.29 in fiscal 3Q16, a rise of 10.3% over fiscal 3Q15. Hershey’s cash and cash equivalents fell 3.8% and its inventories rose 12.3% between fiscal 4Q15 and fiscal 3Q16.

Projections

Hershey (HSY) has made the following projections for fiscal 2016:

  • net sales growth of ~1.0%, which includes a net benefit from acquisitions and divestitures of ~0.5 points and the unfavorable impact of 0.75 points from the foreign currency exchange rate
  • adjusted EPS in the range of $4.28–$4.32, which includes a barkTHINS dilution of $0.05–$0.06 per share

Next, we’ll discuss Helen of Troy (HELE).

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