Hershey Q2 Adj. EPS Tops View, Updates FY Sales Outlook

(RTTNews) - Chocolate maker Hershey Co. (HSY) Friday said its net loss for the second quarter was $99.9 million or $0.47 per share, compared to net income of $168.2 million or $0.75 per share in the prior-year period. The latest results included $1.23 per share in charges.

Adjusted earnings per share were $0.78, while it totaled $0.76 per share last year. On average, 15 analysts polled by Thomson Reuters expected earnings of $0.75 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated net sales were $1.579 billion, compared with $1.578 billion for the second quarter of 2014. Analysts expected revenues of $1.62 billion.

Additionally, the Board of Directors declared a quarterly dividend of $0.583 on the Common Stock, an increase of about 9 percent.

Over the remainder of the year, net sales are expected to be driven by strong Halloween and Holiday seasonal programming and the continued rollout of new products in North America, including, Kit Kat White Minis, Hershey's Caramels and Ice Breakers Cool Blasts Chews.

For the full year, the company still expects adjusted earnings per share to be in the $4.10 to $4.18 range, an increase of 3 to 5 percent from 2014, including dilution from acquisitions and divestitures of around $0.20 per share. Analysts look for earnings of $4.15 per share for the year.

Hershey estimates full-year 2015 net sales will increase 1.5 to 2.5 percent, including a net benefit from acquisitions and divestitures of about 1 percentage point and unfavorable foreign currency exchange of approximately 1.5 percentage points.

Excluding unfavorable foreign currency exchange rates, full-year net sales are expected to increase 3 to 4 percent.

In June, the company projected full-year adjusted earnings of $4.10 to $4.18 per share and sales growth of 2.5 percent to 3.5 percent.