Hershey Foods (HSY) Misses Q1 EPS by 8c, Withdraws FY20 Guidance

Hershey Foods (NYSE: HSY) reported Q1 EPS of $1.63, $0.08 worse than the analyst estimate of $1.71. Revenue for the quarter came in at $2.04 billion versus the consensus estimate of $2.08 billion.

2020 Full-Year Financial Outlook

The company's previously issued net sales and earnings guidance on January 30, 2020, did not anticipate a significant impact from COVID-19. Overall, the company's first quarter performance was relatively in line with expectations, with a modest impact from COVID-19. However, retail foot traffic and takeaway have been volatile and consumer shopping and consumption behaviors are evolving in light of social distancing protocols. The length and severity of the pandemic and associated changes to consumer behaviors remain uncertain. Due to the rapidly, evolving situation and the high degree of uncertainty, the company does not believe that it can estimate the full financial impacts with reasonable accuracy, and therefore believes it is prudent to withdraw fiscal 2020 full-year guidance at this time. The company believes it has sufficient liquidity to satisfy its cash needs, as supported by access to bank lines of credit and an unsecured revolving credit facility. The company reaffirms its long-term financial objectives of net sales growth in the range of 2% to 4% and an increase in earnings per share of 6% to 8%

For earnings history and earnings-related data on Hershey Foods (HSY) click here.

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