Hershey Company (NYSE:HSY, ETR:HSY) shares moved lower after the chocolate-maker warned “historic” high cocoa prices could limit its earnings upside in 2024 as it also reported mixed fourth-quarter results.
For 4Q, Hersey said its sales increased modestly year over year, by 0.2% to $2.66 billion, while adjusted earnings per share (EPS) stayed flat at $2.02.
Wall Street analysts had expected revenue to grow by 2% and adjusted earnings per share of $1.95.
For the full year 2023, Hersey saw its sales increase by 7.2% to $11.17 billion and adjusted EPS up 12.6% to $9.59.
For 2024, the company expects to see sales growth of 2% to 3% and flat EPS as it faces higher cocoa and sugar costs and one-time expenses related to its cost-savings initiatives.
"While historic cocoa prices are expected to limit earnings growth this year, we believe our strong marketing plans, innovation and brand investments will drive top-line growth and meet consumers' evolving needs,” Hershey CEO Michele Buck said in a statement.
Hershey shares traded down 1.7% at about $199 on Friday morning.