Hershey (NYSE:HSY) Announces Earnings Results

Key Points

• Hershey topped Q1 estimates with adjusted EPS of $2.35 versus $2.04 expected and revenue of $3.10 billion (up 10.7% year‑over‑year).
• The company guided to a material margin improvement — roughly 300 basis points gross‑margin gain in Q2 versus last year and more than 500 basis points in the back half — driven by seasonal/tentpole momentum, premium innovation and strong salty‑snack growth.
• Near‑term caution: management expects headline organic sales to be slightly down in Q2 due to shipment timing (Easter/international pull‑forwards); shares fell ~1.8% after the print, analysts remain mixed (consensus "Hold" with a $222.89 average target), and Hershey declared a $1.452 quarterly dividend (3.2% yield).

Hershey (NYSE:HSY - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $2.35 earnings per share for the quarter, topping analysts' consensus estimates of $2.04 by $0.31, FiscalAI reports. Hershey had a net margin of 7.55% and a return on equity of 27.90%. The company had revenue of $3.10 billion for the quarter, compared to the consensus estimate of $3.03 billion. During the same quarter last year, the firm posted $2.09 earnings per share. Hershey's revenue was up 10.7% on a year-over-year basis.

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 Trading Down 1.8%

Shares of NYSE:HSY traded down $3.42 during mid-day trading on Friday, reaching $182.32. The stock had a trading volume of 1,793,987 shares, compared to its average volume of 2,011,823. Hershey has a twelve month low of $150.04 and a twelve month high of $239.48. The firm has a market cap of $36.96 billion, a PE ratio of 42.01, a price-to-earnings-growth ratio of 1.14 and a beta of 0.18. The company has a current ratio of 1.19, a quick ratio of 0.72 and a debt-to-equity ratio of 1.01. The firm has a 50 day simple moving average of $210.21 and a two-hundred day simple moving average of $196.68.

Hershey Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 15th will be given a $1.452 dividend. This represents a $5.81 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Friday, May 15th. Hershey's dividend payout ratio (DPR) is currently 133.64%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on HSY shares. Stephens lifted their target price on shares of Hershey from $200.00 to $260.00 and gave the company an "overweight" rating in a research report on Thursday, February 12th. Mizuho boosted their target price on shares of Hershey from $165.00 to $195.00 and gave the company a "neutral" rating in a research note on Tuesday, February 24th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Hershey in a report on Tuesday, April 21st. Wells Fargo & Company dropped their price objective on shares of Hershey from $220.00 to $200.00 and set an "equal weight" rating for the company in a report on Friday. Finally, BTIG Research started coverage on shares of Hershey in a report on Monday, April 13th. They set a "neutral" rating for the company. Seven equities research analysts have rated the stock with a Buy rating and sixteen have issued a Hold rating to the company. According to MarketBeat, Hershey currently has an average rating of "Hold" and an average price target of $222.89.

Insider Activity

In other news, insider Rohit Grover sold 3,500 shares of the business's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $226.07, for a total value of $791,245.00. Following the completion of the transaction, the insider owned 34,568 shares of the company's stock, valued at $7,814,787.76. The trade was a 9.19% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Jason Reiman sold 2,000 shares of the business's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $226.07, for a total transaction of $452,140.00. Following the completion of the transaction, the senior vice president directly owned 41,036 shares of the company's stock, valued at $9,277,008.52. This trade represents a 4.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 10,000 shares of company stock valued at $2,189,090 in the last quarter. Company insiders own 0.08% of the company's stock.

Institutional Investors Weigh In On Hershey

Hedge funds have recently modified their holdings of the business. JPL Wealth Management LLC acquired a new position in shares of Hershey in the third quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Hershey in the fourth quarter valued at approximately $30,000. Measured Wealth Private Client Group LLC bought a new position in shares of Hershey during the third quarter worth about $35,000. DV Equities LLC acquired a new position in Hershey during the 4th quarter worth approximately $37,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in Hershey during the 4th quarter worth approximately $47,000. Institutional investors and hedge funds own 57.96% of the company's stock.

Trending Headlines about 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.

Hershey Company Profile

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.

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