Hershey(HSY) ZACKS·2024-08-01 16:36Core Viewpoint - The Hershey Company reported disappointing second-quarter 2024 results, with both earnings and net sales declining year over year, missing consensus estimates, and management has lowered its sales and earnings guidance for 2024 [1][2][8] Financial Performance - Adjusted earnings were 1.44 [2] - Consolidated net sales were 2,297.5 million [2] - On a constant-currency basis, organic sales fell by 16.8%, primarily due to reductions in retailer inventory in North America and international markets [2] - Adjusted gross margin contracted to 43.2%, down 200 basis points year over year, mainly due to higher commodity costs [2] Operating Expenses - Selling, marketing, and administrative expenses decreased by 5.4% year over year, primarily due to lower marketing expenses [3] - Adjusted operating profit was 1,579.8 million, attributed to planned inventory reductions and shifts in shipment timing [4] - The North America Salty Snacks segment saw net sales rise 6.4% to 204.8 million, with organic sales declining 10.4% [6] Guidance and Future Outlook - Management now expects approximately 2% year-over-year net sales growth for 2024, down from the previous range of 2-3% [8] - Adjusted earnings per share are projected to decline slightly to a range of 9.59, compared to the earlier forecast of no change year over year [8] - Capital expenditure is expected to be between 625 million for 2024, focusing on core confection capacity expansion and digital infrastructure investments [7]