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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Food & drink

Hershey Co loses sweetness after fourth quarter numbers disappoint

The candy maker blamed the drop in sales partly on the timing of shipments and the launch of the Hershey's Cookie Layer Crunch bar the year before

Hershey Co's (NYSE:HSY) shares lost some of their sweetness in pre-market trade after its fourth quarter numbers missed market consensus.

In a statement, the candy maker said net income came in at US$181.1mln, or 85 US cents per share, up from the US$116.9mln, or 55 US cents per share recorded in the same quarter a year ago.

READ: Hershey in focus after US$921mln deal to buy Amplify Snack's Skinny Pop

Adjusted EPS stood at US$1.03, falling short of the market consensus for US$1.07.

In the quarter, sales came in at US$1.94bn, lower from the US$1.97bn reported a year earlier and off the market consensus of US$1.96bn.

The sweet maker blamed the drop in sales partly to the timing of shipments and the launch of the Hershey's Cookie Layer Crunch bar the year before.

It however expects 2018 net sales to see a growth of 5% to 7%, while organic sales are expected to rise up to 2%.

Adjusted EPS is forecast at between US$5.33 to US$5.43, the company said.

"In 2017, we continued to strengthen our core chocolate brands, positioned our snacks business for on-going success and increased adjusted operating profit margin," said Michele Buck, the company's President and Chief Executive Officer.

READ: Hershey posts market beating third quarter results and unveils new stock repurchase programme

The candy and snacks company said it is currently evaluating the cash benefit of the new tax reform laws.

In pre-market trade, its shares tumbled 4.94% at US$110.33.

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