What to Expect from Hershey's Earnings

Hershey HSY will release its quarterly earnings report on Thursday, 2025-05-01. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Hershey to report an earnings per share (EPS) of $1.95.

The announcement from Hershey is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.31, leading to a 1.7% increase in the share price the following trading session.

Here's a look at Hershey's past performance and the resulting price change:

Stock Performance

Shares of Hershey were trading at $165.07 as of April 29. Over the last 52-week period, shares are down 14.74%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Observations about Hershey

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Hershey.

Analysts have given Hershey a total of 11 ratings, with the consensus rating being Neutral. The average one-year price target is $159.36, indicating a potential 3.46% downside.

Comparing Ratings Among Industry Peers

The below comparison of the analyst ratings and average 1-year price targets of Kraft Heinz, General Mills and Tyson Foods, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Kraft Heinz, with an average 1-year price target of $29.75, suggesting a potential 81.98% downside.
• Analysts currently favor an Neutral trajectory for General Mills, with an average 1-year price target of $62.25, suggesting a potential 62.29% downside.
• Analysts currently favor an Neutral trajectory for Tyson Foods, with an average 1-year price target of $60.33, suggesting a potential 63.45% downside.

Analysis Summary for Peers

The peer analysis summary offers a detailed examination of key metrics for Kraft Heinz, General Mills and Tyson Foods, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Hershey ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Unveiling the Story Behind Hershey

Hershey is a leading US confectionery manufacturer (around a $54 billion market, according to Euromonitor), controlling around 36% of the domestic chocolate space. Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 100 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 80 countries, albeit with just a high-single-digit percentage of sales coming from markets outside the US, including Brazil, India, and Mexico. The firm has sought inorganic opportunities to extend its reach beyond its core confection business, adding Amplify Snack Brands and its Skinny Pop ready-to-eat popcorn to its mix, Pirate Brands, and Dot's Pretzels over the past few years.

Financial Insights: Hershey

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, Hershey showcased positive performance, achieving a revenue growth rate of 8.67% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.

Net Margin: Hershey's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 27.59%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Hershey's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 17.86% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 6.23%, the company showcases effective utilization of assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.16, caution is advised due to increased financial risk.

To track all earnings releases for Hershey visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.