Ahead Of Hershey's Q4 Results

(RTTNews) - Chocolate maker Hershey Co. (HSY) continues to benefit from the productivity initiatives related to the organization simplification program announced in June, and strong seasonal business plans that complement the activity related to core brand merchandising, programming and innovation.

The company expects North America advertising and related consumer marketing to accelerate and its investment in consumer and customer programming to be up markedly when compared to both the just-completed third quarter and the fourth quarter of 2014.

The fourth-quarter results are due to be released before the bell on Thursday, January 28, with analysts polled by Thomson Reuters estimating earnings of $1.05 per share on revenue of $1.98 billion.

For the full year 2015, net sales, excluding unfavorable foreign currency exchange rates, is expected to increase about 1.5% - 2.0%. This is less than the previously provided range of 3.0% - 4.0% due primarily to international macroeconomic challenges and the third-quarter CMG marketplace trends.

The company estimates full-year net sales to be about the same, to slightly up, versus 2014, including a net benefit from acquisitions and divestitures of about 1 percentage point and unfavorable foreign currency exchange of at least 1.5 percentage points.

Adjusted earnings per share for fiscal year is expected to be towards the low end of the previously provided 3% - 5% range, or about $4.10 per share. Previously, the company expected adjusted earnings per share for fiscal year in the range of $4.10 - $4.18.

Dilution from acquisitions and divestitures included in the adjusted earnings per share-diluted outlook is expected to be about $0.35 per share. This is greater than the previous estimate of about $0.20 per share.

Wall Street is currently looking for fiscal year 2015 earnings of $4.13 per share on annual revenues of $7.54 billion.

Q3 Overview

In the last quarter, reported net income dropped to $154.8 million or $0.70 per share from $223.7 million or $1.00 per share in the comparable period of 2014.

The latest-quarter result included net pre-tax charges of $140.2 million, or $0.47 per share. The results for the prior year quarter included net pre-tax charges of $13.8 million, or $0.05 per share.

Non-GAAP earnings per share increased to $1.17 from $1.05 in the prior year. Analysts polled by Thomson Reuters expected earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude certain special items.

Consolidated net sales for the quarter edged down to $1.961 billion from $1.962 billion for the third quarter of 2014. Excluding the effect of foreign currency translation, which was greater than estimates and a 2.0 point headwind, net sales increased 2.0% versus the year ago period. Wall Street expected revenues of $1.98 billion for the quarter.