Hershey (NYSE:HSY) Announces Quarterly Earnings Results, Beats Expectations By $0.53 EPS

Key Points

• Hershey beat quarterly expectations: Earnings per share came in at $2.64 versus the $2.11 consensus, while revenue rose 3% year over year to $3.28 billion, slightly above estimates.
• Growth prospects remain mixed: Management maintained its 2027 sales-growth target of 2%–4% and expects a significantly larger innovation pipeline, but warned that competition, cautious consumers and market-share losses continue to pressure volumes.
• Shares declined 2% despite the earnings beat: Hershey’s quarterly dividend remains $1.452 per share, or $5.81 annualized, representing an approximately 3.6% yield.

Hershey (NYSE:HSY - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.11 by $0.53, Zacks reports. The business had revenue of $3.28 billion during the quarter, compared to the consensus estimate of $3.25 billion. Hershey had a net margin of 12.24% and a return on equity of 31.92%. The company's quarterly revenue was up 3.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.30 earnings per share.

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 Down 2.0%

Shares of HSY stock traded down $3.21 on Thursday, hitting $160.56. The stock had a trading volume of 2,615,185 shares, compared to its average volume of 1,538,782. The business has a 50 day moving average of $170.14 and a 200 day moving average of $189.16. The stock has a market cap of $32.26 billion, a price-to-earnings ratio of 22.56, a price-to-earnings-growth ratio of 1.37 and a beta of 0.10. 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 has a 12-month low of $156.16 and a 12-month high of $239.48.

Hershey Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 16th will be paid a $1.4520 dividend. The ex-dividend date is Monday, November 16th. This represents a $5.81 annualized dividend and a dividend yield of 3.6%. Hershey's dividend payout ratio is presently 79.37%.

Trending Headlines about Hershey

Here are the key news stories impacting Hershey this week:

• Positive Sentiment: Q3 earnings exceeded expectations. Hershey reported adjusted earnings of $2.64 per share, up sharply from $1.30 a year earlier and ahead of the roughly $2.11-$2.12 consensus. Revenue rose 3% year over year to $3.28 billion, also topping estimates. Pricing, cost relief and tariff refunds helped drive the margin improvement. HSY Q3 Earnings Top Estimates on Cost Relief and Pricing Gains
• Positive Sentiment: Management raised its 2026 earnings outlook following the strong quarter, supporting the near-term profit story. Analysts also remain constructive in some cases: Evercore raised its price target to $225 while maintaining an outperform rating. Evercore rating
• Positive Sentiment: Hershey is targeting 2%-4% sales growth in 2027 and plans to expand its innovation pipeline by approximately 50%, potentially supporting future product launches and growth. Hershey targets 2027 sales growth
• Neutral Sentiment: The quarterly dividend was maintained at $1.452 per common share, or $5.81 annualized, with a yield of approximately 3.6%. The payment is scheduled for December 15 for shareholders of record on November 16. Hershey declares quarterly dividends
• Negative Sentiment: Hershey reduced its 2026 organic sales-growth forecast. Management warned that higher prices and consumer financial pressure are hurting demand, particularly for Halloween candy. Hershey trims FY26 organic sales growth
• Negative Sentiment: Volume and market-share losses remain concerns. Pricing drove much of the revenue and profit growth, but weaker volumes raise questions about the sustainability of earnings gains and consumer acceptance of higher prices. Hershey continues to lose volume and market share

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on HSY shares. Royal Bank Of Canada reissued a "sector perform" rating and issued a $206.00 price objective (down from $212.00) on shares of Hershey in a research note on Tuesday. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $191.00 target price (up from $190.00) on shares of Hershey in a research report on Friday, July 31st. Weiss Ratings upgraded Hershey from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, October 23rd. JPMorgan Chase & Co. reduced their price target on shares of Hershey from $193.00 to $183.00 and set a "neutral" rating for the company in a research report on Thursday, October 15th. Finally, Evercore boosted their price target on shares of Hershey from $210.00 to $225.00 and gave the company an "outperform" rating in a research note on Wednesday. Eight research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Hershey presently has an average rating of "Hold" and a consensus price target of $201.43.

About Hershey

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.

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