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

Hershey (NYSE:HSY) announced its quarterly earnings data on Thursday. The company reported $1.90 earnings per share for the quarter, beating analysts’ consensus estimates of $1.43 by $0.47, FiscalAI reports. Hershey had a net margin of 9.12% and a return on equity of 28.98%. The firm had revenue of $2.79 billion during the quarter, compared to analysts’ expectations of $2.63 billion. During the same quarter in the previous year, the business posted $1.21 earnings per share. The business’s quarterly revenue 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 Stock Performance

NYSE:HSY opened at $177.16 on Friday. The firm’s fifty day simple moving average is $179.54 and its 200 day simple moving average is $196.85. 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 has a twelve month low of $161.43 and a twelve month high of $239.48. The firm has a market capitalization of $35.94 billion, a price-to-earnings ratio of 32.99, a PEG ratio of 1.15 and a beta of 0.11.

Hershey Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be issued a dividend of $1.452 per share. The ex-dividend date is Friday, August 14th. This represents a $5.81 annualized dividend and a dividend yield of 3.3%. Hershey’s payout ratio is presently 108.19%.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. BTIG Research initiated coverage on shares of Hershey in a report on Monday, April 13th. They issued a “neutral” rating on the stock. Wells Fargo & Company dropped their price target on Hershey from $220.00 to $200.00 and set an “equal weight” rating on the stock in a research report on Friday, May 1st. DA Davidson raised Hershey to a “hold” rating in a report on Monday, July 6th. Piper Sandler decreased their price target on Hershey from $249.00 to $200.00 and set an “overweight” rating for the company in a report on Thursday, July 9th. Finally, UBS Group lowered their target price on shares of Hershey from $200.00 to $190.00 and set a “neutral” rating on the stock in a report on Thursday, July 16th. Seven investment analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company. According to MarketBeat.com, Hershey has an average rating of “Hold” and an average price target of $208.28.

Insider Buying and Selling

In other news, CFO Steven E. Voskuil sold 1,500 shares of the company’s stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $170.00, for a total value of $255,000.00. Following the completion of the sale, the chief financial officer owned 53,195 shares of the company’s stock, valued at $9,043,150. This represents a 2.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.08% of the stock is owned by company insiders.

Institutional Investors Weigh In On Hershey

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Marshall Wace LLP grew its stake in shares of Hershey by 546.6% during the fourth quarter. Marshall Wace LLP now owns 1,057,476 shares of the company’s stock valued at $192,439,000 after acquiring an additional 893,940 shares in the last quarter. Readystate Asset Management LP acquired a new position in Hershey in the fourth quarter worth about $72,001,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Hershey by 41.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,331,730 shares of the company’s stock worth $242,348,000 after purchasing an additional 390,058 shares in the last quarter. Alyeska Investment Group L.P. increased its holdings in Hershey by 279.6% in the fourth quarter. Alyeska Investment Group L.P. now owns 330,030 shares of the company’s stock valued at $60,059,000 after buying an additional 243,097 shares during the last quarter. Finally, Bank of Montreal Can raised its stake in Hershey by 92.2% during the fourth quarter. Bank of Montreal Can now owns 429,918 shares of the company’s stock valued at $78,236,000 after buying an additional 206,214 shares in the last quarter. Hedge funds and other institutional investors own 57.96% of the company’s stock.

More Hershey News

Here are the key news stories impacting Hershey this week:

• Positive Sentiment: Hershey reported second-quarter sales of $2.79 billion, up 6.6% year over year and above the $2.63 billion analyst consensus. Adjusted earnings of $1.90 per share exceeded estimates of approximately $1.43-$1.45, helped by pricing, improved margins and contributions from LesserEvil. Hershey beats quarterly sales estimates
• Positive Sentiment: North America Salty Snacks sales increased 22.9% to $387.8 million, while demand for Reese’s, Dot’s Pretzels and other core products remained resilient despite cautious consumer spending. Management said supply-chain optimization and price realization are supporting second-half momentum. Hershey Q2 2026 Earnings Call Transcript
• Positive Sentiment: Hershey narrowed its 2026 outlook while lifting the lower end of its expectations, projecting sales growth of 4.5% to 5% and adjusted EPS of $8.36 to $8.52. Potential tariff rebates are excluded from the forecast. Hershey reports higher Q2 sales, earnings and tightens 2026 outlook
• Positive Sentiment: The company maintained its quarterly common-stock dividend at $1.452 per share, payable September 15 to shareholders of record August 14, preserving a dividend yield of roughly 3.3%. Hershey declares quarterly dividends
• Neutral Sentiment: Management expects cocoa cost relief to become more meaningful in 2027, but Hershey continues to redesign its supply chain and use product innovation to reduce exposure to volatile cocoa prices. How chocolate makers are defending against cocoa price swings
• Negative Sentiment: Price increases of about 12% helped offset an approximately 8% volume decline. Investors appear concerned that continued pricing could weaken demand further, particularly in North American confectionery. Hershey stock drops as earnings beat is overshadowed by volume slide
• Negative Sentiment: Brokerages currently have a consensus “Hold” rating, suggesting analysts see balanced upside and downside following the earnings release. Hershey receives consensus Hold recommendation

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.