Hershey (NYSE:HSY) Announces Quarterly Earnings Results, Beats Estimates By $0.47 EPS

Hershey (NYSE:HSY) posted its earnings results on Thursday. The company reported $1.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.43 by $0.47, FiscalAI reports. Hershey had a return on equity of 28.98% and a net margin of 9.12%.The firm had revenue of $2.79 billion for the quarter, compared to analyst estimates of $2.63 billion. During the same quarter in the prior year, the company earned $1.21 EPS. Hershey’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 Stock Down 2.2%

NYSE:HSY traded down $3.96 during mid-day trading on Thursday, hitting $179.95. The company had a trading volume of 1,010,002 shares, compared to its average volume of 2,025,259. The business has a fifty day simple moving average of $179.81 and a 200-day simple moving average of $196.93. The firm has a market capitalization of $36.50 billion, a price-to-earnings ratio of 33.63, a PEG ratio of 1.14 and a beta of 0.11. Hershey has a 1 year low of $161.43 and a 1 year high of $239.48. The company has a current ratio of 1.24, a quick ratio of 0.77 and a debt-to-equity ratio of 0.99.

Hershey News Summary

Here are the key news stories impacting Hershey this week:

• Positive Sentiment: Adjusted earnings were $1.90 per share, well above the $1.43-$1.45 analyst consensus and up from $1.21 a year earlier. Revenue rose 6.6% to $2.79 billion, exceeding estimates of approximately $2.63 billion. Hershey Q2 Earnings Beat Estimates on Pricing and Margin Gains
• Positive Sentiment: Pricing, steady demand for Reese’s and other core chocolate brands, and margin recovery drove the earnings improvement. North America Salty Snacks sales jumped 22.9% to $387.8 million, helped by the LesserEvil acquisition, while international sales increased 5.7%. Hershey beats quarterly sales estimates
• Positive Sentiment: Hershey declared quarterly dividends of $1.452 per common share and $1.320 per Class B share, reinforcing its shareholder-return appeal. Hershey Declares Quarterly Dividends
• Neutral Sentiment: The company narrowed its 2026 outlook to sales growth of 4.5%-5% and earnings growth of 82%-89%, with full-year EPS guidance of $8.36-$8.52 and revenue guidance of $12.2-$12.3 billion. The ranges are broadly in line with analyst expectations, limiting the impact of the guidance update. Hershey Reports Second-Quarter 2026 Financial Results
• Negative Sentiment: Investors remain concerned about softer North American confectionery consumption and cautious consumer spending. The earnings beat relied partly on higher prices, raising questions about how sustainable volume growth and pricing power will be. Does Softer Candy Demand Shift Hershey’s Pricing Power Or Just Investor Expectations?
• Negative Sentiment: Recent insider activity has been heavily weighted toward selling, including a $255,000 CFO sale under a pre-arranged Rule 10b5-1 plan. While planned selling is not necessarily a bearish signal, it can weigh on sentiment.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on HSY. TD Cowen upgraded Hershey from a “hold” rating to a “buy” rating and set a $210.00 target price for the company in a report on Friday, May 1st. Piper Sandler dropped their price target on Hershey from $249.00 to $200.00 and set an “overweight” rating on the stock in a research note on Thursday, July 9th. Jefferies Financial Group set a $190.00 price target on Hershey in a research report on Thursday, July 16th. Morgan Stanley reduced their target price on Hershey from $247.00 to $227.00 and set an “overweight” rating on the stock in a research note on Thursday, April 23rd. Finally, DA Davidson upgraded Hershey to a “hold” rating in a report on Monday, July 6th. Seven analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $208.28.

Insider Activity at Hershey

In related news, CFO Steven E. Voskuil sold 1,500 shares of the business’s stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $170.00, for a total transaction of $255,000.00. Following the transaction, the chief financial officer directly owned 53,195 shares of the company’s stock, valued at approximately $9,043,150. The trade was a 2.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.08% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Elevation Point Wealth Partners LLC acquired a new position in Hershey in the 4th quarter worth $354,000. Brooklyn Investment Group grew its stake in Hershey by 26.8% during the 3rd quarter. Brooklyn Investment Group now owns 1,719 shares of the company’s stock valued at $321,000 after purchasing an additional 363 shares in the last quarter. Integrated Advisors Network LLC increased its stake in shares of Hershey by 7.2% in the fourth quarter. Integrated Advisors Network LLC now owns 1,520 shares of the company’s stock worth $277,000 after buying an additional 102 shares during the last quarter. B. Riley Wealth Advisors Inc. bought a new stake in shares of Hershey in the 2nd quarter worth about $250,000. Finally, Brown Brothers Harriman & Co. raised its stake in Hershey by 36.8% during the fourth quarter. Brown Brothers Harriman & Co. now owns 1,368 shares of the company’s stock valued at $249,000 after buying an additional 368 shares in the last quarter. 57.96% of the stock is currently owned by hedge funds and other institutional investors.

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.