Stifel Reiterates Hold Rating on Hershey (HSY)
Stifel analyst Matthew Smith reiterated a Hold rating and $180.00 price target on Hershey (NYSE: HSY)
The analyst comments "Hershey reported 3Q24 EPS of $2.34, down 10%, which was $0.24 below our estimate and $0.22 below the consensus estimate. Organic revenue declined 1% with volume/mix down 3% partially offset by a 2% contribution from pricing. Organic revenue was up 0.9% for N.A. Confectionery, down 15.5% for N.A. Salty Snacks, and up modestly for International. The gross margin contracted 460bps from the prior year to 40.3% due to higher commodity costs, deleverage, and unfavorable mix partially offset by pricing and productivity savings. Operating profit declined 13.2% due the items impacting the margin performance partially offset by cost savings and lower compensation expense. The company lowered its FY24 guidance and now expects flat net sales, down from ~+2% previously, and a mid-single digit decline in EPS, previously down slightly. The company’s pre-recorded remarks are HERE. The conference call is at 8:30am ET: 877-407-3982, intl 201-493-6780, pwd 13742417."
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Shares of Hershey closed at $176.82 yesterday.