Hershey Q3 Results Miss Estimates; Sees FY14, FY15 Profit Below View

(RTTNews) - Hershey Co. (HSY) reported that its net income for the third quarter of 2014 declined to $223.74 million or $1.00 per share, from $232.99 million or $1.03 per share for the comparable period of 2013.

Adjusted earnings per share grew to $1.05 from $1.04 in the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $1.08 per share. Analysts' estimates typically exclude special items.

Consolidated net sales rose to $1.96 billion from $1.85 billion last year. Wall Street expected revenues of $1.97 billion for the quarter.

Third-quarter net sales increased 5.8 percent driven primarily by volume. North America net sales increased 4.2 percent driven by strong Halloween seasonal growth and new products. International net sales increased 18.4 percent, slightly less than estimates. Foreign currency exchange rates were a 0.2 point headwind.

Looking ahead for fiscal 2014, the company now expects earnings per share to be in the range of $3.88 - $3.92, and adjusted earnings per share of $4.01 - $4.03. Analysts expect annual earnings of $4.06 per share.

For fiscal 2015, the company projects earnings per share to be in the range of $4.27 - $4.40, and adjusted earnings per share of $4.37 - $4.47. Analysts expect earnings of $4.48 per share for fiscal 2015.