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

Key Points

• Hershey exceeded expectations with quarterly EPS of $1.90 versus the $1.43 consensus and revenue of $2.79 billion versus $2.63 billion, while sales increased 6.6% year over year.
• The company narrowed its 2026 outlook to $8.36-$8.52 EPS and expects organic sales growth in the second half, supported by seasonal demand, new products and merchandising.
• Management cited potential relief from declining cocoa costs and productivity gains, but investors remain cautious about softer confectionery volumes, pricing dependence and supply-chain costs in the salty-snacks business.

Hershey (NYSE:HSY - Get Free Report) released its quarterly earnings data on Thursday. The company reported $1.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $2.79 billion for the quarter, compared to analyst estimates of $2.63 billion. During the same period in the previous year, the company posted $1.21 EPS. The firm's revenue for the quarter was up 6.6% compared to the same quarter last year. 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 Trading Down 2.2%

HSY stock traded down $3.96 during midday trading on Thursday, hitting $179.95. 1,010,002 shares of the company's stock were exchanged, compared to its average volume of 2,025,259. 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. The stock has a market capitalization of $36.50 billion, a PE ratio of 33.63, a P/E/G ratio of 1.14 and a beta of 0.11. The business has a 50-day simple moving average of $179.81 and a two-hundred day simple moving average of $196.93.

Wall Street Analyst Weigh In

HSY has been the topic of several recent research reports. Evercore set a $225.00 target price on shares of Hershey in a research note on Thursday, July 23rd. Bank of America dropped their price objective on shares of Hershey from $220.00 to $200.00 and set a "neutral" rating for the company in a research note on Thursday, June 25th. JPMorgan Chase & Co. decreased their target price on shares of Hershey from $204.00 to $191.00 and set a "neutral" rating on the stock in a research note on Monday, July 13th. Weiss Ratings cut Hershey from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, June 26th. Finally, TD Cowen upgraded Hershey from a "hold" rating to a "buy" rating and set a $210.00 price target for the company in a research report on Friday, May 1st. Seven equities research analysts have rated the stock with a Buy rating and sixteen have issued a Hold rating to the company. Based on data from MarketBeat.com, Hershey has a consensus rating of "Hold" and a consensus target price of $208.28.

Trending Headlines about Hershey

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.

Insider Activity at Hershey

In other news, CFO Steven E. Voskuil sold 1,500 shares of the stock in a transaction 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 completion of the transaction, the chief financial officer directly owned 53,195 shares in the company, valued at approximately $9,043,150. This represents a 2.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.08% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of HSY. JPL Wealth Management LLC acquired a new stake in shares of Hershey during the third quarter valued at about $26,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Hershey in the 4th quarter worth approximately $30,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Hershey in the 3rd quarter worth approximately $35,000. DV Equities LLC purchased a new stake in Hershey in the fourth quarter valued at approximately $37,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in Hershey during the fourth quarter worth $47,000. Institutional investors and hedge funds own 57.96% of the company's stock.

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.

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