Hershey Sweetens Plans for Long-term Growth
Candy maker The Hershey Co. (NYSE: HSY) told an investors’ conference in New York today that the company will raise its investment in five core brands over the next five years “in a disciplined manner, around the world.” The company…
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The strategy centers on the company’s Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher, and Ice Breakers brands. Hershey’s also said that the company has an “aspirational” goal of $10 billion in sales by 2017, up from a projected $6.6 billion this year and an actual revenue total of $6.1 billion in 2011.
For the current fiscal year, Hershey expects sales growth of 7%-9% and full-year adjusted EPS growth of 10%-12%. Last year the company posted EPS of $2.82 and the consensus estimate for this year is $3.21, up about 10.6%. No big change there.
The announcement has not done anything for the company’s shares, which are down -0.9% at $68.87 in a 52-week range of $53.83-$71.00 on roughly normal volume. Investors, apparently, anticipated more.
Paul Ausick
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
