Hershey Foods beats by $0.04, misses on revs; lowers guidance
- Reports Q3 (Sep) earnings of $1.17 per share, $0.04 better than the Capital IQ Consensus of $1.13; revenues were unchanged from the year-ago period at $1.96 bln.
- Co issues downside guidance for FY15, sees EPS at low end of prior range, or approximately $4.10 vs. $4.13 Capital IQ Consensus Estimate.
- Sees full-year net sales 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. 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 aforementioned third-quarter CMG marketplace trends.
- Given year-to-date results and the impact of higher levels of international trade promotion, the company expects the full-year adjusted gross margin increase to be towards the low end of the estimated 135 to 145 basis point range.