Hershey Q3 Adj. Profit Tops View; Sees 2015 Adj. EPS Towards Low End Of Range

(RTTNews) - Hershey Company (HSY) reported that its net income for the third quarter of 2015 declined from last year. It now expects adjusted earnings per share for fiscal year 2015 to be towards the low end of the previously provided 3% to 5% range, or about $4.10 per share.

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

Reported net income for the third quarter of 2015 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 the company to report earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude 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.

The company estimates full-year net sales will 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% to 5% range, or approximately $4.10 per share. Previously, the company expected adjusted earnings per share for fiscal year to be 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 currently is looking for fiscal year 2015 earnings of $4.13 per share on annual revenues of $7.54 billion.