Hershey (NYSE:HSY) Issues Quarterly Earnings Results, Beats Expectations By $0.31 EPS

Hershey (NYSE:HSY) posted its quarterly earnings results on Thursday. The company reported $2.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.04 by $0.31, FiscalAI reports. The firm had revenue of $3.10 billion for the quarter, compared to analysts’ expectations of $3.03 billion. Hershey had a net margin of 9.12% and a return on equity of 28.98%. The firm’s quarterly revenue was up 10.7% on a year-over-year basis. During the same period in the prior year, the company posted $2.09 earnings per share.

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

• Management says competition remains “highly rational,” Easter sell-through exceeded expectations and spring resets leave the company in a net positive position, supporting H2 momentum from tentpoles, retail resets and planned premium/Hershey innovation.
• The company expects headline organic sales to be slightly down in Q2 due to shipment timing (Easter pull-forward and some international pull-forward), so near-term growth will dip despite steady consumption and strong sell-through.
• Hershey expects a clear margin inflection — roughly 300 basis points improvement in gross margin in Q2 versus last year and greater than 500 basis points in the back half of the year.
• Macro risks (SNAP waivers, GLP-1 adoption, and higher gas/oil costs) are being actively monitored and were described as mild so far and already modeled into guidance, but could evolve and affect results.
• Salty snacks remain a growth driver (core salty brands up ~10%); management expects operating income to grow double digits for the year despite discreet logistics/withdrawal costs and LesserEvil amortization.

Hershey Stock Performance

Shares of NYSE:HSY traded down $3.42 on Friday, reaching $182.32. 1,794,054 shares of the company’s stock were exchanged, compared to its average volume of 1,891,227. The firm has a market capitalization of $36.96 billion, a price-to-earnings ratio of 42.01, a PEG ratio of 1.12 and a beta of 0.07. Hershey has a fifty-two week low of $150.04 and a fifty-two week high of $239.48. The business’s 50-day moving average is $210.21 and its two-hundred day moving average is $196.68. The company has a quick ratio of 0.72, a current ratio of 1.24 and a debt-to-equity ratio of 0.99.

Hershey Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 15th will be issued a dividend of $1.452 per share. This represents a $5.81 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Friday, May 15th. Hershey’s dividend payout ratio is 133.87%.

Key Stories Impacting Hershey

Here are the key news stories impacting Hershey this week:

• Positive Sentiment: Q1 results topped estimates: Hershey reported stronger-than-expected revenue and adjusted EPS, driven by pricing and cost pass-through, which supports near-term top-line durability. Read More.
• Positive Sentiment: GLP‑1 tailwind for mints/gum: Management said rising use of GLP‑1 weight‑loss drugs is boosting demand for mints and gum (Ice Breakers), a growing, higher‑margin category offsetting some snack weakness. Read More.
• Positive Sentiment: Dividend increase/confirmation: Hershey declared its quarterly dividend ($1.452/share), supporting income investors and signaling confidence in cash flow. Read More.
• Neutral Sentiment: Earnings-call color — innovation and seasonal help: Management cited strong Easter sales and innovation/premiumization gains (luxury chocolate initiatives), which support medium‑term brand momentum but are not immediate growth guarantees. Read More.
• Negative Sentiment: Margin pressure from higher input and freight costs: Several coverage pieces and the company commentary highlight rising costs that compressed margins despite the beat — a key reason investors are less enthused. Read More.
• Negative Sentiment: Softer guidance focus: Although Hershey reaffirmed 2026 guidance, investors fixated on slightly softer near‑term wording and demand uncertainty, which trimmed sentiment after the print. Read More.
• Negative Sentiment: Analyst reactions trimmed optimism: Multiple firms kept neutral/hold stances or lowered price targets (Barclays, JPMorgan, Wells Fargo, BTIG maintained/adjusted coverage), reflecting concerns about near‑term demand elasticity and a premium valuation — adding selling pressure. Read More. Read More. Read More.

Insiders Place Their Bets

In other news, insider Rohit Grover sold 3,500 shares of the company’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $226.07, for a total transaction of $791,245.00. Following the completion of the transaction, the insider owned 34,568 shares in the company, valued at approximately $7,814,787.76. This represents a 9.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Steven E. Voskuil sold 1,500 shares of the company’s stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $194.10, for a total transaction of $291,150.00. Following the transaction, the chief financial officer owned 57,695 shares of the company’s stock, valued at $11,198,599.50. This represents a 2.53% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 10,000 shares of company stock valued at $2,189,090. Company insiders own 0.08% of the company’s stock.

Hedge Funds Weigh In On Hershey

Several institutional investors have recently modified their holdings of HSY. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Hershey by 6.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,310 shares of the company’s stock worth $2,618,000 after acquiring an additional 937 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Hershey by 20.2% during the second quarter. EverSource Wealth Advisors LLC now owns 697 shares of the company’s stock worth $116,000 after acquiring an additional 117 shares during the last quarter. Gamco Investors INC. ET AL bought a new position in shares of Hershey during the second quarter worth about $267,000. Bank of Nova Scotia grew its position in shares of Hershey by 4.5% during the second quarter. Bank of Nova Scotia now owns 17,927 shares of the company’s stock worth $2,975,000 after acquiring an additional 769 shares during the last quarter. Finally, Daiwa Securities Group Inc. grew its position in shares of Hershey by 5.4% during the second quarter. Daiwa Securities Group Inc. now owns 22,247 shares of the company’s stock worth $3,692,000 after acquiring an additional 1,149 shares during the last quarter. Institutional investors own 57.96% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on HSY shares. DA Davidson set a $243.00 price target on shares of Hershey in a report on Friday, February 6th. Morgan Stanley cut their price target 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 cut their price target on shares of Hershey from $215.00 to $200.00 and set a “neutral” rating on the stock in a report on Friday. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $267.00 price target on shares of Hershey in a report on Friday, February 6th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Hershey in a report on Tuesday, April 21st. Seven investment analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $222.06.

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.