Hershey Foods (NYSE: HSY) reported Q2 EPS of $1.47, $0.04 better than the analyst estimate of $1.43. Revenue for the quarter came in at $1.99 billion versus the consensus estimate of $1.83 billion.

GUIDANCE:

Hershey Foods sees FY2021 EPS of $6.79-$6.92, versus the consensus of $6.89.

• Full-year net sales growth is now expected to be in the range of 6% to 8%, an increase from the previously communicated range of 4% to 6%. This increase is driven by stronger than anticipated recovery in the company's away-from-home business and international markets, as well as the acquisition of Lily's.
• The net impact of acquisitions and divestitures is anticipated to be a 0.7 point benefit.
• Full-year reported earnings per share are now expected to be in the range of $6.59 to $6.85, an increase of 8% to 12% from $6.11 in fiscal 2020. This slight decrease versus the previously communicated range of 9% to 12% is due to incremental costs to execute and integrate the Lily's acquisition.
• Full-year adjusted earnings per share are still expected to be in the $6.79 to $6.92 range, unchanged from the previously communicated 8% to 10% increase from $6.29 in fiscal 2020. Increased profit from higher sales is expected to be offset primarily by incremental tax reserves incurred in the second quarter in connection with an adverse ruling in a non-U.S. tax litigation matter, as well as higher supply chain costs associated with servicing higher volume.

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