Preview Newsletter
Hershey Media Report 7/28/16
-
BRIEF-Hershey on conf call- Know there's a lot of chatter about Mondelez offer, not going to comment further on the matter
Jul 28, 2016 | Reuters
Hershey Co * On conf call - have intensified focus on analysis of global cost structure and business model * On conf call - initial work underway indicates that there are bigger opportunities to unlock cost savings -
UPDATE 1-Hershey's profit beats, net sales rise for first time this year
Jul 28, 2016 | Reuters
By Sruthi Ramakrishnan
Hershey Co, the maker of Hershey's Kisses and Reese's Peanut Butter Cups, reported a better-than-expected quarterly profit as stronger demand and a shift in the timing of shipments helped to boost sales in North America, its biggest market. -
Hershey swings to profit as revenue climbs
Jul 28, 2016 | MarketWatch
By Austen Hufford
Hershey Co. said Thursday it swung to a profit and posted revenue gains in its latest quarter, but it was hurt by lower-than-expected growth in its candy, mint and gum segment. -
Mondelez betting on China
Jul 28, 2016 | Food Business News
By Monica Watrous
Mondelez International, Inc. plans to enter China’s $2.8 billion chocolate market with the launch of its Milka brand this fall. Despite the country’s recent economic woes, China “will continue to be an important part of our growth story,” said Irene Rosenfeld, chairman and chief executive officer, during a July 27 earnings call with financial analysts. -
The Hershey Company (NYSE:HSY) Posted Q2 sales $1.64 billion vs. $1.58 billion: Boston Scientific Corporation (NYSE:BSX), SolarCity Corporation (NASDAQ:SCTY), First Solar, Inc. (NASDAQ:FSLR),
Jul 28, 2016 | Benchmark Monitor
The Hershey Company (NYSE:HSY) traded 1.25 Million shares on last trading day with closing price of $108.19. Company gross margin stands at 45.40% whereas its return on investment (ROI) is 17.00%. Stock value has moved between $80.74 – 117.6 in last one year. Analyst’s mean target price for The Hershey Company (NYSE:HSY) is $97.00 while analysts mean recommendation is 3.10. HSY EPS growth this year and EPS growth next year is -38.20%, 7.44% respectively. -
Squawk Box
Jul 28, 2016 | CNBC
View clip here: http://beta.criticalmention.com/app/#clip/view/23605796?token=0bb79727-7656-4a06-97a6-9dd776756b1c
National Coverage
Trade Coverage
Broadcast Coverage
-
Jul 28, 2016 | Reuters
Hershey Co
* On conf call - have intensified focus on analysis of global cost structure and business model
* On conf call - initial work underway indicates that there are bigger opportunities to unlock cost savings
* CFO- China gross sales are forecasted to decline in 2016
* CFO- for full year expect capex to be in the $265 million-$275 million range, about $20 million less than previous estimate
* CFO- advertising and related consumer marketing expense for the year is lower versus previous estimate
* Know there's a lot of chatter about Mondelez offer, not going to comment further on this matter
* On conf call - expect full-year savings of about $135 million , up from previous estimate Further company coverage: (Bengaluru Newsroom: +1 646 223 8780)
-
UPDATE 1-Hershey's profit beats, net sales rise for first time this year
Jul 28, 2016 | Reuters
By Sruthi Ramakrishnan
Hershey Co, the maker of Hershey's Kisses and Reese's Peanut Butter Cups, reported a better-than-expected quarterly profit as stronger demand and a shift in the timing of shipments helped to boost sales in North America, its biggest market.
The company also reported its first rise in net sales this year, a 3.7 percent increase to $1.64 billion that beat the average estimate of $1.61 billion.
Hershey, which rejected a $23 billion buyout offer from Mondelez International Inc in June, said volume sales were higher than expected in North America as some shipments it expected to make in the third quarter were made in the second.
Promotions also contributed to strong demand in North America, the company said on Thursday.
Hershey said its net sales in North America rose 3.2 percent to $1.44 billion in the three months ended July 3.
The Hershey, Pennsylvania-based company posted a net profit of $146 million, or 68 cents per share, compared with a loss of $99.9 million, or 47 cents per share, a year earlier.
Excluding items, Hershey earned 85 cents per share, handily beating the average analysts' estimate of 78 cents per share, according to Thomson Reuters I/B/E/S.
However, the company reduced its full-year net sales forecast, citing slow sales growth in the United States and macroeconomic challenges in China.
Hershey's shares were untraded before the opening bell. Up to Wednesday's close of $108.19, the company's shares had risen 11.4 percent since news of the Mondelez offer became public in late June.
-
Hershey swings to profit as revenue climbs
Jul 28, 2016 | MarketWatch
By Austen Hufford
Hershey Co. said Thursday it swung to a profit and posted revenue gains in its latest quarter, but it was hurt by lower-than-expected growth in its candy, mint and gum segment.
Hershey has recently been contending with an unsolicited takeover offer. Mondelez International Inc. made a bid to acquire the chocolate maker at the end of June, and it was unanimously rejected by Hershey's board of directors. But Mondelez, whose brands include Oreo cookies, hasn't dropped its pursuit of Hershey, and could raise the offer if it sees an opening, The Wall Street Journal has reported.
Any potential deal will face an unusual number of legal and political hurdles. No deal would happen without the blessing of Hershey Trust Co., which controls 81% of the company's voting power and 8.4% of its common stock, and any sale would need final approval of Pennsylvania's attorney general.
On Thursday, the candy seller said volume growth was higher than expected due to the timing of North American shipments, but it still said the growth at the company's candy, mint and gum category left more to be desired.
"Given the amount of activity in the marketplace, category growth was less than what we anticipated," Chief Executive John Bilbrey said. "We've yet to experience consistent broad-based marketplace gains."
For the quarter, profit was $146 million, or 68 cents a share, compared to a loss of $99.9 million, or 47 cents a share, in the quarter a year prior. Revenue grew 3.7% to $1.64 billion. Analysts polled by Thomson Reuters were expecting 78 cents in earnings per share on revenue of $1.61 billion.
Excluding foreign currency impacts, net sales increased 4.5%. Volume added 3.1 percentage points to sales.
Hershey also said it would increase its quarterly dividend on its common stock to 61.8 cents from 58.3 cents previously.
For the year, Hershey said it expects 1% sales growth and adjusted earnings per share between $4.24 and $4.28. Analysts had expected 1% sales growth and $4.25 a share of adjusted earnings.
Hershey said Thursday it looks forward to launching its Reese's Pieces Peanut Butter Cups and its Krave meat protein bars, made from dried meats and a combination of other ingredients such as mangos, cranberries and quinoa. Hershey bought Krave, the maker of premium beef jerky, last year.
Shares of Hershey were inactive premarket.
-
Jul 28, 2016 | Food Business News
By Monica Watrous
Mondelez International, Inc. plans to enter China’s $2.8 billion chocolate market with the launch of its Milka brand this fall. Despite the country’s recent economic woes, China “will continue to be an important part of our growth story,” said Irene Rosenfeld, chairman and chief executive officer, during a July 27 earnings call with financial analysts.
“By leveraging a formidable power brand like Milka in a sizable category white space, we see significant potential for chocolate in a market where per capita consumption is quite low, even by emerging market standards,” Ms. Rosenfeld said. “We expect our unique brand assets, industry-leading innovation, a new world-class manufacturing facility, and strong sales and marketing capabilities will not only grow our business, but will also accelerate the category.
“While chocolate in China has recently been challenged, we believe we are well-positioned to succeed. Our plans have been presented to customers and will enter the market in the next few weeks, well before the critical Chinese New Year season.”
During the conference call, Ms. Rosenfeld confirmed the company’s offer to acquire the Hershey Co., which was rejected in late June; however she declined to share details related to the matter. Still, she addressed an analyst’s question regarding Hershey’s recent struggles in the Chinese chocolate market and why Milka may be better positioned to succeed.
With respect to chocolate in China, we have studied this for quite some time,” Ms. Rosenfeld said. “The Chinese consumers love brands with personality. We’ve done a lot of testing with the consumer, and our Milka bundle is a very unique bundle. The purity of Alpine milk together with some of the assets that you’re familiar with, the Lila Cow, for example, are really positive with the Chinese consumer, and we have every expectation that we can actually bring growth back to this market with the launch of Milka.”
Within China, e-commerce represents a particularly attractive opportunity for Mondelez, which earlier this year inked a deal with Alibaba Group, the country’s leading e-commerce company, to sell snacks on its Tmall.com platform.
“China is an important market for us,” Ms. Rosenfeld said. “We have some of the most attractive gross margins in that market of any of the emerging markets in the world, but there is no question that the economy has weakened and that’s contributed to slower growth of our categories. So we have continued to selectively invest in marketing support in our power brands, and in particular e-commerce, as the fastest growth in e-commerce is occurring in China.
“We actually see close to 10% of snacks being purchased on-line, and it is one of the drivers of the partnership that we have struck with Alibaba. So we really believe that the strong programming we have on our core franchises, biscuits and gum, together with the launch of China, will help us continue the momentum in that market.”
Near term, she added, the company remains cautious of China’s weakened economy but maintains confidence in long-term opportunities.
Net earnings attributable to Mondelez International in the second quarter ended June 30 were $464 million, equal to 30c per share on the common stock, which was up 14% from $406 million, or 25c, in the prior-year period. Net revenues fell nearly 18% to $6,302 million from $7,661 million. The decline in revenue was driven by the deconsolidation of the company’s coffee business and its Venezuela operations, and currency headwinds. Organic net revenue grew 1.5%, helped by pricing actions and increased consumption of Oreo, belVita and Triscuit products in North America.
Net earnings in the six months ended June 30 were $1,018 million, or 65c per share, up 40% from $730 million, or 45c, in the same period of the previous year. Net revenues declined 17% to $12,757 million from $15,423 million.
“We've modestly reduced our organic net revenue growth outlook to approximately 2% from at least 2%,” said Brian Gladden, executive vice-president and chief financial officer. “This reflects the increasing challenges we’re seeing in global categories, and includes about 100 basis points from revenue management actions. We continue to expect adjusted (operating income) margin of 15% to 16% and are increasingly confident in delivering this commitment.”
-
Jul 28, 2016 | Benchmark Monitor
The Hershey Company (NYSE:HSY) traded 1.25 Million shares on last trading day with closing price of $108.19. Company gross margin stands at 45.40% whereas its return on investment (ROI) is 17.00%. Stock value has moved between $80.74 – 117.6 in last one year. Analyst’s mean target price for The Hershey Company (NYSE:HSY) is $97.00 while analysts mean recommendation is 3.10. HSY EPS growth this year and EPS growth next year is -38.20%, 7.44% respectively.
The board of the charitable trust that controls The Hershey Company (NYSE:HSY) said it had reached an in-principle agreement with the Pennsylvania Attorney General’s office that would avoid a legal row in exchange for reforms in how it is run. The settlement could provide stability to the trust following months of infighting and confrontation with the attorney general’s office. It could also offer the clarity needed for Mondelez International Inc to make a new approach to acquire Hershey.
Boston Scientific Corporation (NYSE:BSX) shares moved to $23.66 after starting the day at $23.99 on Wednesday. BSX market capitalization is 32.10B with 25000 employees. Analyst’s mean target price for Boston Scientific Corporation (NYSE:BSX) is $24.89 while analysts mean recommendation is 1.90. Its weekly performance is -2.47% while year to date (YTD) performance is 28.31%.
Boston Scientific Corporation (NYSE:BSX) on Thursday reported a second-quarter loss of $207 million, after reporting a profit in the same period a year earlier. The Marlborough, Massachusetts-based company said it had a loss of 15 cents per share. Earnings, adjusted for non-recurring costs and amortization costs, came to 27 cents per share. The results met Wall Street expectations. The average estimate of 20 analysts surveyed by Zacks Investment Research was also for earnings of 27 cents per share.
On last trading day SolarCity Corporation (NASDAQ:SCTY) traded 2.22 Million shares and was closed at 27.36. Analyst’s mean target price for SCTY is $26.19 while analysts mean recommendation is 2.50. Company is -55.67% away from its 52 week high and is moving 67.75% ahead of its 52 week low. SCTY Gross Margin is 24.30% and its return on assets is -0.90%. SolarCity Corporation (NASDAQ:SCTY) quarterly performance is -17.86% while its price to sale ratio is 5.90 and price to book ratio is 3.03.
SolarCity Corporation (NASDAQ:SCTY) has installed about two dozen rooftop systems across Pittsburgh in the three weeks since its installers put 36 panels on the O’Brubas’ home, equaling about a third of the residential systems installed in Allegheny County in all of 2015. “The reception here has been awesome,” regional operations manager Josh DuBois said last week as a crew installed a 21-panel system on a home in McKeesport. SolarCity is among the most high-profile national solar power companies. Dubbed the Wal-Mart of solar by some local companies, it is backed by hundreds of millions of dollars from investors and is being courted by electric car and battery maker Tesla Motors, whose founder, Elon Musk, is the largest shareholder in SolarCity.
First Solar, Inc. (NASDAQ:FSLR) traded 1.11 Million shares on last trading day with closing price of $48.55. Company gross margin stands at 28.90% whereas its return on investment (ROI) is 9.00%. Stock value has moved between $40.12 – 74.69 in last one year. Analyst’s mean target price for First Solar, Inc. (NASDAQ:FSLR) is $68.83 while analysts mean recommendation is 2.30. FSLR EPS growth this year and EPS growth next year is 37.80%, -29.29% respectively.
The world’s First Solar, Inc. (NASDAQ:FSLR) -powered aerial circumnavigation of the Earth is now coming to an end, as pilot Bertrand Piccard flies across Saudi Arabia to his final destination of Abu Dhabi. The experimental aircraft, named Solar Impulse 2, took off from Cairo, Egypt on Sunday afternoon on a 48 hour journey to the UAE’s capital, where its voyage began in March 2015.
-
Jul 28, 2016 | CNBC
Brief mention of the Mondelez bid in the context of Hershey earnings.
View clip here: http://beta.criticalmention.com/app/#clip/view/23605796?token=0bb79727-7656-4a06-97a6-9dd776756b1c
Rough transcript: also hershey came in 7 cents above estimates with quarterly profit of 85 cents per share. now, revenue also beat forecasts as they saw the first quarterly sales increase in a year. hersheys is the target of the takeover bid from mondelez international which so far it has rejected.
National Coverage
Trade Coverage
Broadcast Coverage
Add recipients
Suggested