Hershey Co (NYSE:HSY) shares traded into positive territory, up 1.8% to $197.96, after the chocolate and snacks firm reported quarterly financials slightly ahead of Wall Street expectations.
Third-quarter sales amounted to $3.03 billion, up 11% year-over-year and above the $2.95 billion analyst consensus forecast, albeit the improved performance was driven by price increases.
Volumes were described as “increased slightly” with that mostly coming from an rise in salty snacks inventory – comprising its Skinny Pop, Dot’s Pretzels, and a line of Reese’s branded peanut-butter popcorn.
North American confectionery sales accounted for $2.457 billion of total sales and the segment was up 9.9% compared to last year.
Net income for the quarter totaled $518.6 million, up 29.9% from $399.5 million a year ago.
Per share earnings were reported at $2.60, beating forecasts pitched at $2.46.
Hershey kept its guidance, 11% to 12% earnings (per share) growth, which remains aligned with Wall Street projections.
“We remain on track to deliver our full-year sales and earnings commitments after delivering strong third-quarter seasonal sell-in and successfully implementing our new Salty Snacks ERP system in October," chief executive Michele Buck said in a statement.
“As we exit the year, our retail teams are building impactful displays to engage consumers and drive demand while we increase brand investment and partner with retailers to launch exciting innovation to get 2024 off to a fast start."