Data News > Hershey Stock Plummets After Lowered Guidance and Profit Decline
- Hershey cuts yearly guidance and profit after a 17% drop in sales
- Q2 results show lower net sales and earnings due to reduced consumer spending
- Quarterly earnings of $1.27 per share miss estimates, down from $2.01 per share last year
- Hershey's stock declines 7.1% premarket following sales and earnings miss
- The Hershey Company declares quarterly dividends while updating 2024 financial outlook
Hershey, a prominent candy and snack company, has recently experienced a significant setback in its financial performance. The company has lowered its yearly guidance and reported a decline in profits following a steep 17% drop in sales. Hershey attributes this struggling sales performance to a decrease in consumer spending amid persistent inflationary pressures.
This downward trend was reflected in Hershey's Q2 earnings report, which showcased lower net sales and earnings due to a decrease in demand as consumers continue to tighten their discretionary spending habits. As a result, the company's management has adjusted their outlook for the year 2024, anticipating a challenging road ahead.
During the Q2 earnings call, key figures from The Hershey Company, including Chairman and CEO Michele Buck and Senior VP & CFO Steve Voskuil, addressed analysts and investors to discuss the financial results. They were joined by various conference call participants from notable firms such as JPMorgan, Barclays, and Bank of America, among others.
Despite market expectations, Hershey's quarterly earnings fell short, coming in at $1.27 per share, missing the Zacks Consensus Estimate of $1.44 per share. This marked a significant decline from the $2.01 per share earnings reported in the same period last year, signaling a challenging environment for the company.
The disappointing earnings report led to a 7.1% decline in Hershey's stock premarket, as investors reacted to the news of the sales and earnings miss. The company's 2024 guidance was also revised downwards, further contributing to the negative sentiment surrounding Hershey's financial outlook.
In a bid to reassure investors, The Hershey Company declared quarterly dividends, with $1.370 on the Common Stock and $1.245 on the Class B Common Stock. This move aims to maintain shareholder confidence amidst the challenging market conditions faced by the company.
As Hershey reports its second-quarter 2024 financial results and updates its 2024 net sales and earnings outlook, investors are closely monitoring the company's performance amidst increasing uncertainty in the market. With a history of strong dividend growth and a solid yield, Hershey remains a key player in the snack industry, despite the recent challenges faced by the company.
For more information:
Up/Down Rally Price Distribution Analyst Recommendations Earning Price Impact Analysis Seasonality
Hershey Stock Plummets After Lowered Guidance and Profit Decline
By KlickAnalytics Data Insights | August 1, 2024 08:05PM ET
Key Points
- Hershey cuts yearly guidance and profit after a 17% drop in sales
- Q2 results show lower net sales and earnings due to reduced consumer spending
- Quarterly earnings of $1.27 per share miss estimates, down from $2.01 per share last year
- Hershey's stock declines 7.1% premarket following sales and earnings miss
- The Hershey Company declares quarterly dividends while updating 2024 financial outlook
Hershey, a prominent candy and snack company, has recently experienced a significant setback in its financial performance. The company has lowered its yearly guidance and reported a decline in profits following a steep 17% drop in sales. Hershey attributes this struggling sales performance to a decrease in consumer spending amid persistent inflationary pressures.
This downward trend was reflected in Hershey's Q2 earnings report, which showcased lower net sales and earnings due to a decrease in demand as consumers continue to tighten their discretionary spending habits. As a result, the company's management has adjusted their outlook for the year 2024, anticipating a challenging road ahead.
During the Q2 earnings call, key figures from The Hershey Company, including Chairman and CEO Michele Buck and Senior VP & CFO Steve Voskuil, addressed analysts and investors to discuss the financial results. They were joined by various conference call participants from notable firms such as JPMorgan, Barclays, and Bank of America, among others.
Despite market expectations, Hershey's quarterly earnings fell short, coming in at $1.27 per share, missing the Zacks Consensus Estimate of $1.44 per share. This marked a significant decline from the $2.01 per share earnings reported in the same period last year, signaling a challenging environment for the company.
The disappointing earnings report led to a 7.1% decline in Hershey's stock premarket, as investors reacted to the news of the sales and earnings miss. The company's 2024 guidance was also revised downwards, further contributing to the negative sentiment surrounding Hershey's financial outlook.
In a bid to reassure investors, The Hershey Company declared quarterly dividends, with $1.370 on the Common Stock and $1.245 on the Class B Common Stock. This move aims to maintain shareholder confidence amidst the challenging market conditions faced by the company.
As Hershey reports its second-quarter 2024 financial results and updates its 2024 net sales and earnings outlook, investors are closely monitoring the company's performance amidst increasing uncertainty in the market. With a history of strong dividend growth and a solid yield, Hershey remains a key player in the snack industry, despite the recent challenges faced by the company.
For more information:
Disclaimer: the above is a summary showing certain market information. KlickAnalytics is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from various resources and more. Communications displaying market prices, data and other information available in this post are meant for purely for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.