Hershey

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[HSY  Loading...      ()   ] was the unlikely earnings winner of the day after blowout sales pushed the stock higher more than 6 percent, leaving a bad taste in the mouths of analysts, who overwhelmingly hate the shares.

The ‘Kisses’ and ‘Almond Joy’-maker posted first quarter sales of $1.41 billion, above the $1.29 billion consensus analyst estimate from Thomson Reuters. The company also increased its 2010 sales forecast to at least 6 percent, more than its initial estimate of 3 to 5 percent.

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“Hershey’s first quarter results were strong against all key metrics, as our core brand momentum continued to build in the marketplace,” said David West, Hershey’s Chief Executive, in a press release. West cited increased advertising for gains in U.S. market share.

Analysts have been negative on Hershey since it was outbid by Kraft

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[KFT  Loading...      ()   ] for Cadbury earlier this year, raising concerns about the company’s ability to increase its global market share. Eleven analysts rate the stock a ‘hold’ or ‘sell’ and only one says it’s a “strong buy.”

 

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Current DateTime: 06:49:25 28 May 2012
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“Hershey continues to support its brands with 25 to 30 percent higher ad spending in 2010,” wrote BMO Capital Markets analyst Kenneth Zaslow in a note to clients this morning. But, “its long-term growth may be structurally constrained by not acquiring Cadbury.” Zaslow rates Hershey a ‘market perform’.

But the 117-year old company headquartered in the Pennsylvania town that bears its name continues to bank on reinventing itself to grow sales in the U.S. market. Hershey launched a number of new products in December, such as ‘Hershey’s Special Dark’ and ‘Pieces’ lines for ‘Almond Joy’ and ‘York’. The stock is up 33 percent this year.

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John Melloy is the Executive Producer of Fast Money. Before joining CNBC, he was an editor for Bloomberg News, overseeing the U.S. Stock Market coverage team.

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