Hershey's Q4 earnings surprise had a positive impact on its annual performance, as evidenced by several key indicators:
- Earnings Per Share (EPS) Achievement: Hershey's Q4 EPS of $2.69 exceeded analysts' expectations, with the company reporting an EPS of $2.38, resulting in a significant earnings surprise1.
- Revenue Surpass: The company's revenue for Q4 also surpassed estimates, with Hershey reporting $2.89 billion in revenue, compared to the estimated $2.8 billion2.
- Stock Price Reaction: Following the earnings release, Hershey's stock experienced a 6.01% surge, reflecting investor confidence in the company's performance3.
- Annual Estimate Comparison: When comparing Hershey's annual performance to estimates, the company's adjusted EPS of $9.37 for the year outperformed the annual estimate of $8.992.
- Gross Margin Improvement: The company's gross margin for Q4 increased by 1170 basis points to 54.0%, driven by derivative mark-to-market gains and supply chain productivities2.
In conclusion, Hershey's Q4 earnings surprise had a favorable effect on its annual performance, with the company exceeding financial targets and demonstrating strong operational efficiency.