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Food & drink

Sales from Hershey are a chunk short of a full bar

Earnings beat forecast but the sales numbers left a bad taste in the mouths of investors

Confectionery company Hershey Co (NYSE:HSY) had a mixed bag for investors with its fourth quarter results.

Earnings per share of US$1.17 were up from US$1.08 a year earlier. The market had been expecting earnings to be flat year-on-year.

While earnings may have been sweeter than expected, the sales were one chunk short of a full bar at US$1.97bn, up 3.2% year-on-year but less than the US$1.99bn analysts had been expecting.

For the current financial year, Hershey is guiding towards earnings per share of between US$4.72 and US$4.82.

Despite this being above the median forecast of US$4.64, shares in Hershey eased 1.4% to US$104.08 in early deals.

Revenue is tipped to rise by two or three per cent from 2016’s US$7.44bn.

The market had been forecasting sales of US$7/63bn in 2017.