Hershey’s (NYSE:HSY) reported a lackluster fourth quarter in 2017; however, the core legacy product line continues to deliver cash to fuel strategic investments to grow the company’s product line and pay dividends to shareholders. I don’t expect to see any change in the stock price in the short-term while cost reduction and acquisitions pay off, but investors can enjoy dividends in the meantime.
When Hershey’s reported fourth-quarter 2017 results of $1.94 billion and adjusted earnings per share of $1.03, the stock responded negatively and traded down over (5%) in premarket trading. Both metrics were below estimates of $1.97 billion and $1.06 per share. Fourth quarter net sales decreased (1.6%) which brought down the full-year increase to only 1% in 2017. The fourth quarter net sales decrease was largely driven by a (2.3%) decrease in volume; partially offset by higher pricing and favorable currency impact.
