Hershey Company ( HSY ) shares are trading higher after the reported better-than-expected first-quarter FY24 earnings.

The company reported first-quarter FY24 sales growth of 8.9% year-on-year to $3.252 billion, beating the analyst consensus estimate of $3.112 billion.

Hershey’s North America Confectionery segment net sales rose 10.4% Y/Y to $2.707 billion. Sales for Hershey’s International segment increased 1.8% to $270.3 million.

Gross margin expanded 520 basis points Y/Y to 51.5%, and gross profit rose 21.3% Y/Y to $1.67 billion.

Operating margin expanded 570 basis points to 32.5%, and the operating income for the quarter was $1.06 billion.

Adjusted EPS of $3.07 beat the analyst consensus of $2.76.

Hershey held $520.4 million in cash and equivalents as of March-end.

“Our investments in innovation, marketing and in-store execution are driving consumer engagement and improving market share performance across segments,” said President and CEO Michele Buck.

Hershey board declared quarterly dividends of $1.370 on the common stock and $1.245 on the Class B common stock.  The dividends were declared on May 2, 2024, and are payable on June 14 to stockholders of record as of May 17.

Outlook: Hershey reaffirmed FY24 net sales growth of about 2% – 3% versus an estimate of $11.47 billion and adjusted EPS of $9.59 against the consensus of $9.57.

Price Action: HSY shares traded higher by 1.59% at $198.99 premarket at the last check Friday.