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Hershey Tops Q2 Estimates as Shelf-Stable Food Stocks Slide
Hershey reported second-quarter revenues of $2.79 billion, up 6.6% year on year and 5.7% above analysts' expectations, the largest estimate beat among the 17 shelf-stable food stocks tracked. The company also beat analysts' gross margin and organic revenue estimates, and CEO Kirk Tanner said reported net sales rose 8.7% in the first half with organic net sales up 5.8%. J. M. Smucker posted the group's best quarter, with revenues of $2.22 billion, up 5% year on year and 4.3% ahead of expectations, while Hain Celestial had the weakest, with revenues of $263.1 million, down 27.6% year on year and 2.2% below estimates. Across the group, revenues beat consensus by 0.8% while next quarter's revenue guidance came in 3.6% below, and share prices have fallen 8.9% on average since the latest results. Hershey shares are down 8.6% since reporting and trade at $168.15, J. M. Smucker is down 4.9% at $119.34, Hain Celestial is down 9.8% at $0.56, Utz is flat at $14.21, and Lamb Weston is down 3.4% at $47.51.
HSY · Capital · Positive Hershey beat Q2 revenue, gross margin and organic revenue estimates, with revenues up 6.6% year on year.
HAIN · Capital · Negative Hain Celestial posted the group's weakest quarter, with revenues down 27.6% year on year and 2.2% below estimates.
SJM · Capital · Positive J. M. Smucker posted the group's best quarter, with revenues up 5% year on year and 4.3% ahead of expectations.
LW · Capital · Negative Lamb Weston is mentioned only as a shelf-stable food peer whose shares fell 3.4% since results.
UTZ · Capital · Neutral Utz is mentioned only as a peer with flat share price; no company-specific development given.