With costumed trick-or-treaters raring to go door to door this year after a pandemic-ridden 2020, candy maker Hershey Co is expected to bump up its annual sales forecast even as supply chain bottlenecks plague the industry.
Hershey has about 70% of its manufacturing capacity in the United States, and that is expected to help it deliver its Kisses and Reese’s in time for what is expected to be the biggest Halloween in terms of spending.
The period around the October holiday is Hershey’s busiest time of the year, making up about 10% of the company’s annual sales.
Graphic – Halloween spending forecasts over the years: https://graphics.reuters.com/HERSHEY-RESULTS/byprjramape/chart.png
Consumer spending on Halloween-related items is expected to reach an all-time high of $10.14 billion this year, according to a National Retail Federation (NRF) survey, compared with $8.05 billion spent in 2020.
“There’s going to be a lot of pent-up demand this Halloween, because many people couldn’t celebrate last year. Coupled with that, in general the consumer is in a very healthy position and vaccination rates have been growing,” CFRA analyst Arun Sundaram said.
THE CONTEXT
Growing global supply chain issues and worker shortages triggered by the pandemic have hurt packaged food makers. The companies are also taking a hit to their margins due to soaring prices of commodities such as sugar, cocoa beans, wheat and edible oils.
“Hershey would have an easier time navigating the (supply chain) crisis given that the company has less complexities in its supply chain compared to other packaged food companies who have a more global presence,” Sundaram added.
NRF data suggests more U.S. consumers are ready to celebrate Halloween this year after a year of limited trick-or-treating.
THE FUNDAMENTALS
** Analysts forecast annual revenue of $8.82 billion for Hershey, which will report quarterly results before markets open on Thursday
** Full-year adjusted profit is estimated to be $6.91 per share
Graphic – Hershey likely to bump annual sales forecast on record Halloween spend: https://graphics.reuters.com/HERSHEY-RESULTS/jnvwewozlvw/chart.png
WALL STREET SENTIMENT
** The current average analyst rating for Hershey is “hold”, with a median price target of $185.00
** The company’s shares have risen nearly 20% this year
QUARTER STARMINE REFINITIV IBES ACTUAL BEAT, SURPRI
ENDING SMARTESTIMATE® ESTIMATE MET, SE %
MISSED
Jun. 30 2021 1.42 1.43 1.47 Beat 3
Mar. 31 2021 1.79 1.80 1.92 Beat 6.7
Dec. 31 2020 1.42 1.43 1.49 Beat 4.5
Sep. 30 2020 1.72 1.72 1.86 Beat 8.3
(Reporting by Mehr Bedi in Bengaluru; Editing by Sweta Singh and Shounak Dasgupta)
TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.
The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.
The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.
The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.
Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.
Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.
This report by The Canadian Press was first published Nov. 6, 2024.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
