The Hershey Company (HSY) is likely to register a decline in its top and bottom lines when it reports first-quarter 2025 earnings on May 1. The Zacks Consensus Estimate for revenues is pegged at $2.82 billion, implying a 13.3% decrease from the prior-year quarter’s reported figure. The consensus mark for earnings has moved down by 2 cents in the past 30 days to 1.94 per share, which suggests a decrease of 36.8% from the figure reported in the year-ago quarter. However, HSY has a trailing four-quarter earnin ...

Core Viewpoint - Hershey faces significant challenges including tariffs, recession, and increased competition, which may impact its financial performance and dividend safety [1] Group 1: Challenges Facing Hershey - Tariffs are creating additional costs for the company, affecting profit margins [1] - The potential for a recession poses a risk to consumer spending on non-essential items like candy [1] - Increased competition in the candy market is putting pressure on Hershey's market share and pricing strategies [1] Group 2: Dividend Safety - The discussion revolves around whether Hershey's dividend remains secure amidst these challenges [1]

Company Performance - Hershey's stock closed at $166.59, with a gain of +1.44% from the previous session, outperforming the S&P 500's gain of 0.13% [1] - Over the past month, Hershey's shares have declined by 1.86%, underperforming the Consumer Staples sector's gain of 0.72% and the S&P 500's loss of 6.3% [1] Upcoming Earnings - Hershey's earnings report is anticipated on May 1, 2025, with expected earnings of $1.94 per share, reflecting a year-over-year decline of 36.81% [2] - Revenue is projected to be $2.82 billion, indicating a 13.25% decrease compared to the same quarter last year [2] Fiscal Year Projections - For the fiscal year, earnings are estimated at $6.10 per share, representing a decline of 34.9%, while revenue is projected at $11.42 billion, showing a slight increase of 1.99% from the previous year [3] Analyst Estimates and Rankings - Recent changes in analyst estimates for Hershey suggest a shifting business landscape, with positive revisions indicating optimism about the company's outlook [3][4] - The Zacks Rank system, which evaluates estimated changes, currently ranks Hershey at 3 (Hold) [5] Valuation Metrics - Hershey's Forward P/E ratio stands at 26.93, which is higher than the industry's average Forward P/E of 22.86 [6] - The company has a PEG ratio of 5.85, compared to the Food - Confectionery industry's average PEG ratio of 4.36 [6] Industry Context - The Food - Confectionery industry is part of the Consumer Staples sector, holding a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [7] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]

The Hershey Company ( HSY ) is known for its strong brands, such as Hershey itself, but also Reese's and recent acquisitions such as Dot's Pretzels, SkinnyPop and recently LesserEvil.I'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in both revenue, earnings and free ca ...

Group 1: Company Overview - Hershey is primarily known for its chocolates but operates as a snack maker, expanding into salty snacks like pretzels and popcorn [2] - The company has recently acquired LesserEvil, which produces healthier snack options, to enhance its salty snack portfolio [2] Group 2: Current Challenges - Hershey faces significant challenges due to a sharp rise in cocoa prices, which affects its chocolate confections [3][4] - The company is expected to see a mid-30% decline in adjusted earnings for 2025, following a slight decrease in 2024 earnings [4] Group 3: Sales and Revenue Outlook - Despite the earnings decline, Hershey projects a sales increase of at least 2% in 2025, supported by the addition of LesserEvil [5] - The company's food business continues to grow, with revenues being more stable than earnings over time [6] Group 4: Market Dynamics - Higher cocoa prices are expected to eventually lead to lower prices in the commodity market, suggesting that current challenges may be temporary [7] - Chocolate remains an affordable luxury for consumers, allowing Hershey to gradually implement price increases [8] Group 5: Long-term Perspective - A poor earnings year does not reflect negatively on Hershey as a company, which is facing typical short-term headwinds [9] - Monitoring sales trends is crucial, as resilient sales could present a buying opportunity for long-term investors, especially with a historically high dividend yield of 3.3% [10]

Look for Reese's Filled Pretzels at your favorite snack spot and grab a bag, pouch or jar before they're gone. Follow @Reeses on social media for the latest brand news and snack updates. *Pricing is at the sole discretion of the retailer. We took pretzels, packed them with Reese's peanut butter filling, and changed the snack aisle forever HERSHEY, Pa., April 9, 2025 /PRNewswire/ -- You may want to sit down for this. Reese's, the No. 1 candy franchise in the US1 just dropped a new snacking sensation. Introdu ...

Finn Wittrock and Alexandra Daddario as Milton and Catherine Hershey Principal Photography Begins May 2025 Across PennsylvaniaHERSHEY, Pa., April 8, 2025 /PRNewswire/ -- HERSHEY, a major motion picture of chocolate pioneer Milton Hershey and his beloved wife Catherine, 'Kitty', is officially set for production beginning in May 2025. Millions worldwide instantly recognize the distinctive wrapped Hershey's bar, but few know the extraordinary human story behind it. A must-see movie for chocolate-lovers and fan ...

Core Viewpoint - The Hershey Company is acquiring LesserEvil to expand its portfolio into the better-for-you snacking market, aligning with changing consumer preferences [1][3][7] Group 1: Acquisition Details - Hershey plans to acquire LesserEvil, a brand known for organic snacks, which will enhance its snack portfolio [1][2] - The acquisition is subject to regulatory approval and is expected to close later this year [1] - LesserEvil's focus on bold flavors and clean ingredients complements Hershey's existing brands [2][3] Group 2: Strategic Implications - This acquisition will broaden Hershey's healthier snack offerings and introduce new product categories [3] - LesserEvil's manufacturing capabilities are expected to improve production efficiency for Hershey [3] - The move reflects Hershey's strategy to balance its traditional confectionery business with modern snacking trends [3][7] Group 3: Market Context - Hershey is undergoing a transformation to drive long-term growth by streamlining operations and improving efficiency [5] - The company is enhancing its marketing strategy to align with consumer trends and integrate its supply chain [5] - Hershey faces challenges such as high cocoa prices, changing consumer spending habits, and increased competition [6]

Group 1 - The core message of the campaign is to emphasize the importance of taking breaks in a busy world, with KIT KAT® positioning itself as a brand that facilitates these moments of pause [1][2][3] - The Break Brothers are introduced as characters that symbolize the brand's commitment to helping consumers enjoy distraction-free breaks, reinforcing the idea of a "real, crispy, creamy break" [2][3] - The campaign will debut during the NCAA Men's Championship Game on April 7, highlighting the brand's strategy to reach a wide audience through a major sporting event [4][5] Group 2 - The Hershey Company is a leading snacks company with over $11.2 billion in annual revenues, operating in approximately 70 countries and employing more than 20,000 people [6] - The company's portfolio includes well-known brands such as Hershey's, Reese's, Kisses, and Kit Kat®, as well as popular salty snacks like SkinnyPop and Dot's Homestyle Pretzels [6] - Hershey has a long-standing commitment to social responsibility, focusing on education and community support, which has been part of its mission for over 130 years [7]

Company Performance - Hershey's stock closed at $166.83, increasing by 1.76% from the previous session, outperforming the S&P 500's decline of 4.84% [1] - The stock has decreased by 7.39% over the past month, underperforming the Consumer Staples sector's gain of 5.4% and the S&P 500's loss of 4.7% [1] Upcoming Earnings - Hershey is expected to report an EPS of $1.96, reflecting a 36.16% decrease from the same quarter last year [2] - The consensus estimate for quarterly revenue is $2.83 billion, down 13.09% from the previous year [2] Fiscal Year Estimates - For the fiscal year, earnings are projected at $6.10 per share, a decline of 34.9%, while revenue is expected to be $11.42 billion, indicating a 1.93% increase from the prior year [3] - Recent changes in analyst estimates suggest evolving short-term business trends, with positive revisions indicating confidence in the company's performance [3] Valuation Metrics - Hershey's Forward P/E ratio stands at 26.86, which is higher than the industry average of 22.48 [6] - The company has a PEG ratio of 5.83, compared to the Food - Confectionery industry's average PEG ratio of 4.32 [7] Industry Context - The Food - Confectionery industry is part of the Consumer Staples sector and currently holds a Zacks Industry Rank of 216, placing it in the bottom 13% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]