Hershey Company Updates 2016 Sales Outlook, Reaffirms Adj. EPS Guidance

(RTTNews) - The Hershey Company (HSY) announced the company estimates 2016 net sales will increase around 1.0%, including a net benefit from acquisitions and divestitures of about 0.5 points and the impact of unfavorable foreign currency exchange rates of 1 point. Constant currency net sales growth of around 2.0% is less than the previous estimate of about 2.5%. The company expects adjusted earnings per share for 2016 to increase 3.0% to 4.0%, including barkTHINS dilution of $0.05 to $0.06 per share, and be in the $4.24 to $4.28 range. Analysts polled by Thomson Reuters expect the company to report profit per share of $4.25. Analysts' estimates typically exclude special items.

Second-quarter consolidated net sales were $1.64 billion, an increase of 3.7% versus the second quarter of 2015. Excluding the effect of foreign currency translation, a 0.8 point headwind, net sales increased 4.5% versus the year ago period. Adjusted net income was $182.6 million, or $0.85 per share compared with $171.9 million, or $0.78 per share for the same period of 2015.

The Board of Hershey Company declared a quarterly dividend of $0.618 on the Common Stock and $0.562 on the Class B Common Stock, an increase of 6% on both classes of stock, or $0.035 and $0.032 per share, respectively.