Hershey (NYSE:HSY) Announces Quarterly Earnings Results

Hershey (NYSE:HSY) announced its quarterly earnings results on Thursday. The company reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.43 by $0.47, FiscalAI reports. Hershey had a net margin of 12.24% and a return on equity of 31.92%. The company had revenue of $2.79 billion during the quarter, compared to analyst estimates of $2.63 billion. During the same quarter in the previous year, the business earned $1.21 EPS. The firm’s revenue was up 6.6% on a year-over-year basis. Hershey updated its FY 2026 guidance to 8.360-8.520 EPS.

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

• Hershey reported stronger underlying demand than scanner data indicated, with U.S. confectionery consumption understated by roughly two percentage points due to Easter timing and non-measured channels. Retail inventory replenishment added about one point of shipment growth in the quarter.
• Management expects organic sales growth in both the third and fourth quarters, supported by Halloween, new products such as Hershey’s n’ Creme, the Hershey movie, and additional merchandising. However, comparisons will be difficult because of last year’s successful Oreo Reese’s innovation, and the company maintained a prudent full-year outlook.
• Hershey continues to view its 2027 framework as achievable, including approximately 2% North American confectionery growth and broader enterprise targets. Executives cited expected cocoa cost deflation, productivity gains, innovation, and eventual volume recovery as supporting factors, although the environment remains volatile.
• Strong demand for Dot’s Pretzels created supply-chain growing pains, including spot freight, higher logistics costs, and limited throughput that pressured snacking margins. Automation is beginning to help, with additional capacity expected online in 2027 and modest margin improvement anticipated in the second half.
• Cocoa costs are expected to decline next year even if futures remain near current levels, according to management, which cited healthier inventories, diversified supply, and encouraging crop data. The company also expects third-quarter earnings growth to benefit from lapping last year’s peak cocoa costs and the full impact of tariffs.

Hershey Trading Down 1.0%

Shares of HSY traded down $1.77 during trading hours on Friday, hitting $175.46. The company had a trading volume of 2,173,856 shares, compared to its average volume of 1,769,697. The company has a quick ratio of 0.77, a current ratio of 1.18 and a debt-to-equity ratio of 1.03. Hershey has a 52-week low of $161.43 and a 52-week high of $239.48. The stock’s 50 day moving average price is $179.16 and its 200 day moving average price is $196.70. The firm has a market cap of $35.59 billion, a P/E ratio of 23.97, a P/E/G ratio of 1.10 and a beta of 0.11.

Hershey Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 14th will be given a dividend of $1.452 per share. This represents a $5.81 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date is Friday, August 14th. Hershey’s dividend payout ratio (DPR) is presently 79.23%.

Insider Buying and Selling at Hershey

In related news, CFO Steven E. Voskuil sold 1,500 shares of Hershey stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $170.00, for a total transaction of $255,000.00. Following the completion of the transaction, the chief financial officer directly owned 53,195 shares of the company’s stock, valued at $9,043,150. This trade represents a 2.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.08% of the company’s stock.

Institutional Trading of Hershey

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Mcguire Capital Advisors Inc. bought a new position in shares of Hershey in the fourth quarter worth about $47,000. Compound Planning Inc. increased its position in Hershey by 12.8% during the fourth quarter. Compound Planning Inc. now owns 1,617 shares of the company’s stock valued at $294,000 after acquiring an additional 183 shares during the last quarter. Invesco Ltd. boosted its position in shares of Hershey by 6.0% during the fourth quarter. Invesco Ltd. now owns 1,332,020 shares of the company’s stock valued at $242,401,000 after buying an additional 75,258 shares during the period. Corient Private Wealth LLC grew its holdings in shares of Hershey by 126.1% in the fourth quarter. Corient Private Wealth LLC now owns 80,577 shares of the company’s stock worth $14,663,000 after purchasing an additional 44,940 shares during the last quarter. Finally, Strive Financial Group LLC purchased a new stake in shares of Hershey in the 4th quarter worth $368,000. 57.96% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts recently weighed in on HSY shares. Morgan Stanley lowered their target price on shares of Hershey from $247.00 to $227.00 and set an “overweight” rating on the stock in a report on Thursday, April 23rd. UBS Group increased their price objective on Hershey from $190.00 to $198.00 and gave the stock a “neutral” rating in a research report on Friday. Wells Fargo & Company cut their target price on Hershey from $200.00 to $190.00 and set an “equal weight” rating for the company in a research report on Friday. Zacks Research downgraded Hershey from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 7th. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $191.00 price objective on shares of Hershey in a research report on Friday. Seven research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $204.06.

Key Headlines Impacting Hershey

Here are the key news stories impacting Hershey this week:

• Positive Sentiment: Hershey reported second-quarter revenue of $2.79 billion, up 6.6% year over year and ahead of the $2.63 billion consensus estimate. Adjusted EPS of $1.90 exceeded expectations of $1.43 and rose sharply from $1.21 a year earlier, helped by pricing, margin recovery and supply-chain improvements. Hershey Reports Second-Quarter 2026 Financial Results
• Positive Sentiment: Management tightened its 2026 outlook and raised the lower end of its expectations, forecasting revenue of approximately $12.2 billion to $12.3 billion and EPS of $8.36 to $8.52. Stronger salty-snack sales, including LesserEvil, and steady demand for Reese’s and Dot’s Pretzels supported the improved outlook. Hershey Reports Higher Q2 Sales and Earnings
• Positive Sentiment: The board maintained Hershey’s quarterly dividend at $1.452 per common share, supporting an annualized yield of roughly 3.3% at the recent share price. Hershey Declares Quarterly Dividends
• Neutral Sentiment: JPMorgan raised its price target from $191 to $193 but retained a Neutral rating, implying limited conviction despite potential upside from current levels. Brokerages overall continue to carry a consensus “Hold” recommendation.
• Negative Sentiment: Growth was driven largely by a reported 12% increase in prices, while volumes fell approximately 8%. Investors are concerned that continued pricing could weaken consumer demand and limit future growth, particularly in North American confectionery. Hershey Stock Drops as Earnings Beat Overshadows Volume Slide
• Negative Sentiment: Cocoa-cost volatility, supply-chain challenges in salty snacks and a cautious consumer environment remain risks. The company’s valuation also remains elevated relative to its recent earnings profile, increasing sensitivity to signs of weakening demand.

About Hershey

The Hershey Company (NYSE: HSY) is a leading North American chocolatier and snack manufacturer headquartered in Hershey, Pennsylvania. The company develops, produces and markets a wide range of confectionery and snack products for retail, foodservice and international customers. Hershey’s business spans manufacturing, branded product marketing, packaging and distribution across grocery, convenience, mass merchant and e-commerce channels.

Hershey’s product portfolio centers on chocolate and sugar confectionery, including core brands such as Hershey’s, Reese’s, Hershey’s Kisses and Twizzlers, alongside non-chocolate snacks and confectionery brands.