Stock Story -
Chocolate company Hershey (NYSE:HSY) will be announcing earnings results tomorrow before the bell. Here's what to look for.
Hershey beat analysts' revenue expectations by 4.5% last quarter, reporting revenues of $3.25 billion, up 8.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' gross margin and organic revenue growth estimates.
Is Hershey a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Hershey's revenue to decline 6.8% year on year to $2.32 billion, a reversal from the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.45 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hershey has missed Wall Street's revenue estimates twice over the last two years.
Looking at Hershey's peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mondelez (NASDAQ:MDLZ) posted flat year-on-year revenue, missing analysts' expectations by 1.3%, and McCormick (NYSE:MKC) reported flat revenue, in line with consensus estimates. McCormick traded up 4.8% following the results.
Read the full analysis of Mondelez's and McCormick's results on StockStory.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 3.4% on average over the last month. Hershey is up 5% during the same time and is heading into earnings with an average analyst price target of $203.4 (compared to the current share price of $193.97).
![Earnings To Watch: Hershey (HSY) Reports Q2 Results Tomorrow](https://d68-invdn-com.investing.com/content/picba57e100056f0cdad6bd97cbf7efd192.jpeg)