Hershey’s 4Q results mixed; demand softens in China

HERSHEY – Hershey’s fourth-quarter profit beat analysts’ estimates, but its revenue fell short of Wall Street expectations because of soft demand in China.
The chocolate bar and candy maker earned $213.4 million, or 98 cents per share, for the period that ended Dec. 31. A year earlier, the central Pennsylvania -based company earned $202.5 million, or 91 cents per share.
Earnings, adjusted for non-recurring costs and costs related to mergers and acquisitions, came to $1.08 per share.
The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.05 per share.
Revenue dropped to $1.91 billion from $2.01 billion, as sales fell in China. Four analysts surveyed by Zacks expected higher revenue of $1.97 billion.
For the year, Hershey Co. reported an adjusted profit of $4.12 per share, on revenue of $7.39 billion.
The company expects 2016 earnings in the range of $4.36 to $4.38 per share. Analysts surveyed by FactSet predict $4.39 per share.