Hershey Foods (NYSE: HSY) reported Q3 EPS of $1.86, $0.14 better than the analyst estimate of $1.72. Revenue for the quarter came in at $2.22 billion versus the consensus estimate of $2.16 billion.

Third-Quarter 2020 Financial Results Summary1

• Consolidated net sales of $2,219.8 million, an increase of 4.0%.
• Organic, constant currency net sales increased 3.8%.
• The net impact of acquisitions and divestitures on net sales was a 0.8 point benefit, while foreign currency exchange was a 0.6 point headwind.
• Reported net income of $447.3 million, or $2.14 per share-diluted, an increase of 39.0%.
• Adjusted earnings per share-diluted of $1.86, an increase of 15.5%.

"We had a strong third quarter, with accelerated reported net sales growth of 4%, adjusted diluted EPS growth of more than 15% and confectionery share gains across markets, including an almost 190 basis point gain in the U.S. Our core U.S. business remains healthy as consumers reach for small treats during the pandemic, and our decision to lean into Halloween ahead of the season supported consumers' desire to find new and creative ways to celebrate safely. We also saw sequential improvement in the areas of our business hit hardest by COVID-19, including our international markets, owned retail locations and food service business," said Michele Buck, The Hershey Company President and Chief Executive Officer. "We are continuing to focus on executing with excellence, investing in the business, and advancing our strategic priorities to deliver a strong fourth quarter and position us well for 2021."

GUIDANCE:

Hershey Foods sees FY2020 EPS of $6.18-$6.24, versus the consensus of $6.03.

The Hershey Company withdrew its fiscal 2020 guidance on April 23, 2020. While the operating environment continues to evolve, the company is reinstating full-year guidance based on current visibility into sales and costs for the balance of the year.

Full-year reported net sales are expected to increase around 1.0%. This reflects a 2 point headwind from COVID-19 in our International & Other segment. The net impact of acquisitions and divestitures is estimated to be a 0.5 point benefit to net sales growth4, and the impact of foreign currency exchange is anticipated to be a 0.5 point headwind based on current exchange rates.

Full-year reported earnings per share-diluted are expected to be in the range of $6.03 to $6.11, an increase of 10.0% to 12.0% versus 2019. Full-year adjusted earnings per share-diluted are expected to be in the range of $6.18 to $6.24, an increase of 7% to 8% versus 2019.

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