Hershey (NYSE:HSY) Issues Earnings Results, Beats Estimates By $0.53 EPS

Hershey (NYSE:HSY) 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 firm had revenue of $3.28 billion for the quarter, compared to analysts’ expectations 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 period in the previous year, the company posted $1.30 EPS.

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 Performance

HSY traded down $3.21 on Thursday, reaching $160.56. The company had a trading volume of 2,615,185 shares, compared to its average volume of 1,538,782. Hershey has a fifty-two week low of $156.16 and a fifty-two week high of $239.48. The stock has a market cap of $32.26 billion, a P/E ratio of 22.56, a P/E/G ratio of 1.37 and a beta of 0.10. The company’s fifty day moving average is $170.14 and its 200 day moving average is $189.16. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.66 and a current ratio of 1.18.

Hershey Dividend Announcement

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

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Bank of America decreased their price objective on Hershey from $200.00 to $180.00 and set a “neutral” rating for the company in a research report on Friday, October 9th. UBS Group reiterated a “neutral” rating and issued a $198.00 target price (up from $190.00) on shares of Hershey in a report on Tuesday, October 20th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $191.00 price target (up from $190.00) on shares of Hershey in a report on Friday, July 31st. Wells Fargo & Company lowered their price objective on shares of Hershey from $190.00 to $170.00 and set an “equal weight” rating on the stock in a research report on Monday, October 5th. Finally, DA Davidson set a $190.00 price objective on shares of Hershey and gave the company a “neutral” rating in a research note on Friday, July 31st. Eight 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. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $201.43.

Hershey News Roundup

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

Hershey Company Profile

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.