Hershey Co, MasterCard Inc Rise After Earnings

Hershey and MasterCard released their second quarter earnings reports before opening bell this morning. Hershey posted adjusted earnings of 85 cents per share on $1.64 billion in revenue, against the consensus estimates of 78 cents per share and $1.61 billion. In last year’s second quarter, the chocolate candy maker posted sales of $1.58 billion.

MasterCard reported adjusted earnings of 96 cents per share on $2.69 billion in revenue, compared to the consensus estimates of 90 cents per share and $2.59 billion. In last year’s second quarter, the credit card company reported $2.39 billion in revenue.

Hershey swings to profit

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Hershey reported a GAAP profit of 68 cents per share this year from last year’s loss of 47 cents per share. The company’s adjusted gross margin declined to 45.5% from 46.7% last year. Higher costs for commodities and within Hershey’s supply chain caused the decline.

“Second-quarter operating results were better than our estimates as North America and International sales sequentially improved, as expected, versus last quarter,” Hershey Chairman, President and CEO said John P. Bilbrey said in a statement. “Performance partially benefited from the timing of select merchandising and program net sales that occurred in the second quarter that were initially expected to ship in the third quarter. Non-seasonal candy, mint and gum (CMG) category growth progressed in the second quarter; however, given the amount of activity in the marketplace, category growth was less than what we anticipated.”

Hershey expects full-year earnings of $4.24 per share to $4.28 per share, compared to the consensus of $4.25 per share. The company expects GAAP earnings to be between $3.77 and $3.86 per share.

The chocolate maker’s stock rose by as much as 1.18% to $109.47 in premarket trading this morning.

MasterCard shares rise

MasterCard logo

MasterCard’s GAAP earnings rose to 89 cents per share from 81 cents per share last year. Processed transactions increased 14% to reach $13.7 billion. Gross dollar volume increased 11% on a local currency basis, while purchase volume grew 9%. Cross-border volumes increased 10% from last year. MasterCard said higher incentives and rebates drove the increases. As of the end of June, the company had issued 2.3 billion MasterCard and Maestro-branded cards.

Shares of MasterCard increased by as much as 1.92% to $95.55 in premarket trading this morning.