Valued at a market cap of $33.7 billion, The Hershey Company (HSY) is a leading U.S. confectionery and snack food manufacturer best known for iconic brands like Hershey’s, Reese’s, and Kit Kat (U.S. license). The Pennsylvania-headquartered company is projected to release its Q1 earnings before the market opens on Thursday, May 1.
Ahead of the event, analysts expect Hershey to report a profit of $1.93 per share, down 37.1% from $3.07 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS projections in two of the past four quarters while missing on two other occasions.
The company reported an adjusted EPS of $2.69 in the last reported quarter, beating the consensus estimates by 13%, thanks to strong pricing actions, a favorable product mix, and effective cost management strategies. It also benefited from robust consumer demand across both its core confectionery brands and its expanding salty snacks portfolio.
For fiscal 2025, analysts expect Hershey to report an adjusted EPS of $6.10, down 34.9% from $9.37 in fiscal 2024. However, in fiscal 2026, its adjusted EPS is expected to rebound, rising 6.6% annually to $6.50.
Hershey’s shares have declined 10% over the past 52 weeks, significantly underperforming the broader S&P 500 Index's ($SPX) 3.8% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 8.9% return over the same time frame.
Shares of Hershey gained over 1% on Apr. 3 as investors rotated into defensive food and beverage stocks during a broad market selloff. The company's reputation for stability and strong consumer demand for its products helped attract safe-haven interest, alongside its major peers.
The consensus opinion on HSY stock is cautious, with an overall “Hold” rating. Out of the 23 analysts covering the stock, one recommends a “Strong Buy,” 17 suggest a “Hold,” one advises a “Moderate Sell,” and four advocate a “Strong Sell” rating.
The stock currently trades above its mean target price of $158.73.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
