Hershey (NYSE:HSY) Releases Earnings Results, Beats Estimates By $0.53 EPS

Hershey (NYSE:HSY) released its earnings results on Thursday. The company reported $2.64 EPS for the quarter, beating the consensus estimate of $2.11 by $0.53, Zacks reports. Hershey had a return on equity of 31.92% and a net margin of 12.24%. The company had revenue of $3.28 billion during the quarter, compared to analysts’ expectations of $3.25 billion. During the same period last year, the firm earned $1.30 EPS. The business’s revenue for the quarter was up 3.0% on a year-over-year basis.

Here are the key takeaways from Hershey’s conference call:

• Management maintained its expectation for 2027 sales growth of 2%–4%, supported by low-single-digit carryover pricing, stronger programming and a pipeline of innovation that is expected to be 50% larger than in 2026.
• Hershey continues to face market-share pressure from aggressive competitor innovation and a cautious consumer; convenience-store category sales were down about 5% in September and October, while difficult comparisons for Reese’s Oreo are expected to weigh on fourth-quarter results.
• The company said its low-double-digit 2027 EPS framework remains possible but would require improvement in freight, logistics, commodity costs, productivity returns and consumer demand; deterioration in those areas could push results below the prior framework.
• Unit and volume trends are improving as pricing moderates, with better momentum across Hershey’s, KIT KAT, Cadbury and Kisses; brand investment will remain elevated, with management citing an 8% improvement in marketing return on investment.
• The salty-snacks business is expected to become a larger top- and bottom-line contributor in 2027 as new manufacturing capacity and automation come online, although current demand still exceeds supply and service levels have not fully recovered.

Hershey Stock Up 2.9%

HSY stock traded up $4.67 during mid-day trading on Friday, reaching $164.95. The company had a trading volume of 789,442 shares, compared to its average volume of 1,840,015. The company has a market capitalization of $33.14 billion, a price-to-earnings ratio of 22.50, a PEG ratio of 1.37 and a beta of 0.10. Hershey has a 52 week low of $156.16 and a 52 week high of $239.48. The stock has a 50 day simple moving average of $170.14 and a two-hundred day simple moving average of $189.16. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.18 and a quick ratio of 0.66.

Hershey Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Monday, November 16th will be paid a $1.4520 dividend. This represents a $5.81 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Monday, November 16th. Hershey’s dividend payout ratio (DPR) is currently 79.37%.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the company. The Goldman Sachs Group reissued a “buy” rating and issued a $194.00 price target on shares of Hershey in a research note on Friday. Deutsche Bank Aktiengesellschaft set a $173.00 price target on shares of Hershey in a research report on Friday. JPMorgan Chase & Co. decreased their price objective on shares of Hershey from $193.00 to $183.00 and set a “neutral” rating for the company in a report on Thursday, October 15th. Stifel Nicolaus reduced their price target on shares of Hershey from $215.00 to $180.00 and set a “hold” rating on the stock in a research report on Wednesday, July 22nd. Finally, Rothschild & Co Redburn boosted their target price on Hershey from $166.00 to $170.00 and gave the company a “sell” rating in a research note on Wednesday, August 5th. Seven investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Hershey currently has a consensus rating of “Hold” and a consensus price target of $196.05.

Key Hershey News

Here are the key news stories impacting Hershey this week:

• Positive Sentiment: Hershey reported third-quarter adjusted earnings of $2.64 per share, well above the roughly $2.11 consensus estimate, while revenue of $3.28 billion also topped expectations and rose 3% year over year. Pricing, cost relief and tariff refunds helped drive the substantial earnings improvement. HSY Q3 Earnings Top Estimates on Cost Relief and Pricing Gains
• Positive Sentiment: The company raised its full-year 2026 earnings outlook, supported by better pricing, productivity measures and lower costs. Management also highlighted a 50% larger innovation pipeline and maintained its 2027 sales-growth target of 2% to 4%, offering potential support for longer-term growth. Hershey targets 2% to 4% 2027 sales growth
• Positive Sentiment: Hershey declared a quarterly dividend of $1.452 per common share, equivalent to $5.81 annually and a yield of approximately 3.6%, reinforcing the stock’s income appeal. Hershey Declares Quarterly Dividends
• Neutral Sentiment: Analyst actions were mixed: Evercore raised its price target to $225 while BNP Paribas Exane lowered its target to $195, and TD Cowen downgraded HSY from Buy to Hold with a $173 target. The mixed views reflect improved profitability but uncertainty around demand and execution.
• Negative Sentiment: Hershey lowered its 2026 organic sales-growth outlook, warning that inflation, higher gas prices, interest rates and cautious shoppers could pressure Halloween and broader candy demand. Management also cautioned that rising costs and weak volumes may weigh on margins, creating risks to the 2027 growth plan. Hershey warns financial pressures on consumers

Hershey Company Profile

The Hershey Company (NYSE: HSY) is a global confectionery and snack food manufacturer headquartered in Hershey, Pennsylvania. Founded by Milton S. Hershey in 1894, the company began as a chocolate producer and has grown into one of the largest branded snack businesses in North America.

Hershey’s portfolio includes chocolate, non-chocolate confectionery, gum and mints, and salty snacks. Its brands include Hershey’s, Reese’s, Hershey’s Kisses, Kit Kat in the United States under license from Nestlé, Jolly Rancher, Twizzlers, Ice Breakers, SkinnyPop and Dot’s Pretzels.