Wednesday, April 26, 2017

Earnings - HSY, PG, PYPL, SAM

Today we received a slew of earnings reports. This morning we received reports from Hershey's(HSY), Procter & Gamble(PG), and this afternoon will be Paypal(PYPL), and Boston Beer(SAM).

Hershey's(HSY) reported Q1 earnings with EPS of $0.58 on revenues of $1.87 billion. Overall sales increased 2.8% which is in-line with expectations and the industry overall. Nothing to exciting in this quarter so it's business as usual. The stock however has traded negative all day, and dipped below $107 for a bit. Here is what the CEO had to say.

"I'm pleased with our first-quarter results, which were driven by seasonal sales growth, the roll-out of Hershey's Cookie Layer Crunch bars and our continued focus on cost control," said Michele Buck, President and Chief Executive Officer, The Hershey Company. "Net sales increased 2.8%, slightly less than our forecast and reflective of the broader soft U.S. food-industry retail trends to start the year.

Procter & Gamble(PG) reported their Q3 2017 earnings with EPS of $0.93 on revenues o $15.6 billion. Pretty much same thing it was an uneventful quarter overall. The company did announce a few weeks back their 61st consecutive dividend increase. The stock qualifies itself as a dividend king for raising it's dividend 50+ years. There are currently 19 companies currently considered dividend kings. Shares have traded negative for most the day and currently are down 2.6%. Here is what the CEO had to say.

“The third quarter macro environment was characterized by a slowdown in market growth, continued geopolitical disruptions and foreign exchange challenges,” said David Taylor, Chairman, President and Chief Executive Officer. “Against this backdrop, we delivered modest organic sales growth and double-digit Core EPS growth, and we increased the quarterly dividend for the 61st consecutive year. Looking forward, we are maintaining our organic sales and Core EPS guidance ranges for the year and increasing our outlook for adjusted free cash flow productivity.”

PayPal(PYPL) reported Q1 results with EPS of $0.32 on revenues of $2.97 billion. The company added 6 million new accounts during the quarter. TPV was up 23% from last year.  Also the company raised it's guidance for 2017 so we should expect revenue to grow 15-17% and EPS to be in the range of $1.28-$1.33. I'd like to see more EPS growth personally.  The company continues to grow at a rapid clip, and continues to make strategic partnerships and acquisitions. Additionally the company authorized another $5 billion stock repurchase plan in addition to the original $5 billion repurchase program authorized last year. The new program won't start until the old program ceases.  The stock is up 5% in AH trading. Here is what the CEO had to say.

"With another quarter of strong financial results, we continue to deliver on our vision to democratize financial services for our consumers and drive the global transition from cash to digital payments," said Dan Schulman, President and CEO of PayPal. "We are deepening our merchant offerings and relationships, and expanding our network of strategic partnerships to make PayPal more available in new contexts and new markets."

Boston Beer(SAM) reported Q1 results with EPS of $0.45 on revenues of $161 million.  The company saw sales and depletions decline by 14%. What can I say this is a tough quarter. Volumes are lower, and competition is still fierce.  The company expects EPS for the year to be between $4.20-$6.20.  Not surprisingly the stock is down in AH trading to $136. I'm hoping the remainder of the year turns up for this stock.  Here is what management had to say.

Jim Koch, Chairman and Founder of the Company, commented, "Our total company depletions continued to decline in the first quarter. These declines were mostly caused by weakness in the Samuel Adams brand, especially our seasonal beers, and a general softening of the craft beer category that continues to be very competitive. New craft brewers continue to enter the market and existing craft brewers are expanding their distribution and tap rooms, with the result that drinkers are seeing more choices.

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