Hershey Q2 Profit Beats Street; Updates 2013 Earnings View - Quick Facts

(RTTNews) - Hershey Co. (HSY) said its second quarter reported net income grew to $159.5 million, or $0.70 per share, compared with $135.69 million, or $0.59 per share, a year ago. Excluding net charges, adjusted net income stood at $163.61 million, or $0.72 per share in the second quarter of 2013. On average, 15 analysts polled by Thomson Reuters expected earnings per share of $0.71 for the quarter. Analysts' estimates typically exclude one-time items.

Consolidated net sales totaled $1.51 billion, compared with $1.41 billion for the 2012 second quarter. Analysts estimated revenues of $1.51 billion for the quarter. Volume was a 6.6 point benefit in the quarter, driven by core brand growth and new products in U.S. and key international markets, including a contribution of approximately 1 point from Brookside distribution gains and on track repeat purchases. Foreign currency exchange rates was a 0.1 point benefit.

For the full year 2013, the firm now expects reported earnings per share of $3.60 - $3.65. This projection, prepared in accordance with GAAP, assumes business realignment charges and NSRPE costs of $0.06 - $0.08 per share. Adjusted earnings per share increased, expected to be up around 14% and be in the $3.68 - $3.71 range. Seventeen analysts project 2013 earnings per share of $3.65.

Annual net sales are estimated to increase about 7 percent, including the impact of foreign currency exchange rates. Net sales would be driven by core brand volume growth, Brookside distribution gains and repeat purchases as well as innovation such as Kit Kat Minis, Twizzlers Bites and Jolly Rancher Bites products in the U.S., Hershey's Mais candy in Brazil, and the fourth-quarter launch of Hershey's Kisses Deluxe and Hershey's Drops chocolates in China, the company added.

Further, the board declared a quarterly dividend of $0.485 on the Common Stock, an increase of $0.065 per share, and a dividend of $0.435 on the Class B Common Stock, an increase of $0.055 per share. The dividends are payable September 13, 2013, to stockholders of record as of August 23, 2013.