Group 1 - The Hershey Company has not been analyzed in detail since August 2016, indicating a significant gap in coverage for this chocolate giant [1] - The article suggests a focus on the investment potential of The Hershey Company, highlighting its relevance in the market [1] Group 2 - The content mentions a service that provides in-depth cash flow analyses and stock model accounts, which could be beneficial for investors interested in the oil and gas sector [2] - A promotional offer for a two-week free trial is available, aimed at attracting new subscribers to the investment service [3]

Core Insights - The Hershey Company is facing significant challenges, including high cocoa prices, weakening consumer demand, and increased competition, leading to a 6.1% decline in share price over the past six months [1][4][13] - The company's stock has underperformed compared to its industry, the broader Zacks Consumer Staples sector, and the S&P 500 during the same period [1] Group 1: Market Challenges - Hershey is navigating a difficult environment characterized by historically high cocoa prices and a financially strained consumer base, which is impacting its results [4] - There has been a shift in consumer behavior towards value-seeking, resulting in reduced foot traffic to convenience and drug stores where Hershey's products are prominently featured [4] - The company is losing market share in the core everyday chocolate category, which is concerning given its reliance on this segment [5] Group 2: Sales and Performance - Despite some improvement in product variety, sales in the convenience store segment remain weak due to macroeconomic pressures affecting consumer spending [6] - Hershey's 2025 guidance indicates a projected mid-30% decline in adjusted earnings per share (EPS) compared to 2024, with reported EPS expected to drop in the high-40% range [7] - Management anticipates gross margin pressure to intensify in the second half of 2025, potentially leading to a decline of more than 500 basis points [8] Group 3: Competitive Landscape - Competitive pressures are expected to escalate, particularly in Brazil and Mexico, where rivals are aggressively discounting and promoting their products [9] - The Zacks Consensus Estimate for EPS has seen downward revisions, with estimates for the current and next fiscal year decreasing [10] Group 4: Valuation and Investment Analysis - Hershey's forward 12-month price-to-earnings ratio is 30.12X, which is higher than the industry's ratio of 24.32X, indicating that investors may be paying a premium relative to expected earnings growth [12] - Given the significant challenges faced by Hershey, the company may carry heightened investment risk at this time, with a current Zacks Rank of 5 (Strong Sell) [13]

Core Viewpoint - The Hershey Company (NYSE: HSY) is currently rated as a HOLD, with the analyst waiting for the earnings hype to subside before considering a potential buy [1]. Group 1: Investment Strategy - The analyst identifies as a value dividend investor focused on long-term compounding [1]. - The approach involves investing in companies that are heavily undervalued with significant upside potential [1]. - The goal is to eventually live off dividends generated from long-term growth dividend companies [1].

Core Insights - The article discusses the expertise of Vladimir Dimitrov, CFA, who has a background in brand and intangible assets valuation, particularly in the technology, telecom, and banking sectors [1]. Group 1 - Vladimir Dimitrov has worked with some of the largest global brands during his career in London [1]. - He graduated from the London School of Economics and focuses on identifying reasonably priced businesses with sustainable long-term competitive advantages [1].

Core Insights - The Hershey Company has appointed Stacy Taffet as Chief Growth Officer, effective April 14, 2025, to drive transformative growth strategies across its expanding snacks portfolio [1][3] - Taffet brings 20 years of leadership experience, including 15 years in consumer-packaged goods, with a notable career at PepsiCo [1][2] - The appointment aligns with Hershey's commitment to accelerate growth and strengthen its position in the competitive global snacking market [3] Company Overview - The Hershey Company is an industry-leading snacks company with over 20,000 employees worldwide, generating more than $11.2 billion in annual revenues [5] - The company's portfolio includes iconic brands such as Hershey's, Reese's, Jolly Rancher, and Dot's Homestyle Pretzels, alongside popular salty snacks like SkinnyPop [5] - Hershey has a long-standing commitment to community impact, with a focus on education through initiatives like the Milton Hershey School [6]

Core Insights - The Hershey Company has appointed Tiffany Menyhart as Chief Customer Officer, effective March 17, 2025, to lead the U.S. Confection sales team [1][2] - Menyhart brings 30 years of sales and consumer packaged goods experience, with 15 years specifically in the confectionery sector, and has a strong track record in driving profitable growth and transforming retail partnerships [2][3] - The company aims to enhance its position as a leading snacking powerhouse under Menyhart's leadership, focusing on meeting the evolving needs of retail partners and consumers [2][3] Company Overview - The Hershey Company is recognized as an industry leader in snacks, generating over $11.2 billion in annual revenues from more than 90 brand names across approximately 80 countries [3] - The company employs over 20,000 individuals globally, committed to delivering high-quality products and maintaining ethical and sustainable operations [3][4] - Hershey has a long-standing commitment to social responsibility, including educational initiatives through the Milton Hershey School, established in 1909 [4]

Core Viewpoint - The Hershey Company recently reported strong Q4 2024 earnings, surpassing analyst expectations, but issued mixed guidance for 2025, leading to a stock rally despite concerns over future earnings and cocoa prices [1][4][5]. Financial Performance - Hershey's Q4 2024 EPS was $2.69, exceeding consensus estimates by $0.32, with revenues increasing 8.7% year-over-year to $2.89 billion, also above the expected $2.84 billion [4]. - Net income rose significantly by 130.6% year-over-year to $3.92 per diluted share, supported by a diverse product portfolio beyond chocolate [4]. Margin Expansion - Despite rising cocoa prices, Hershey managed to expand its gross margin by 1,170 basis points to 54% in Q4, aided by derivative gains, higher sales volume, and improved supply chain productivity [3]. - The adjusted gross margin increased by 60 basis points to 44.8%, while the operating profit margin rose by 1,500 basis points to 32.5% [3]. Cocoa Market Dynamics - Cocoa prices have reached all-time highs due to adverse weather conditions affecting production in West Africa, where two-thirds of the world's cocoa is sourced [2]. - China's investment in West Africa for cocoa processing is influencing global supply dynamics [2]. Future Guidance - For 2025, Hershey anticipates a significant EPS drop to between $6.00 and $6.18, compared to the consensus estimate of $7.33, while revenue is expected to grow at least 2% year-over-year to at least $11.43 billion [5]. - Adjusted EPS is projected to decline in the mid-30% range, indicating potential challenges ahead [5]. Stock Performance and Analyst Ratings - Hershey's stock has rebounded 12% from its recent lows, but analysts currently rate it as "Reduce," with a consensus price target of $164.15, which is 3.9% higher than current levels [8][10]. - The stock has a short interest of 3.39%, indicating some bearish sentiment among investors [8].

HERSHEY, Pa., Feb. 19, 2025 /PRNewswire/ -- The Hershey Company ("Hershey" or the "Company") (NYSE: HSY) announced today the pricing of its offering of $500,000,000 of 4.550% notes due 2028, $500,000,000 of 4.750% notes due 2030, $500,000,000 of 4.950% notes due 2032 and $500,000,000 of 5.100% notes due 2035 (the "Notes Offering") in a public offering. The Company intends to use the net proceeds of the Notes Offering to repay all of its outstanding 0.900% Senior Notes due 2025 and 3.200% Senior Notes due 20 ...

In this podcast, Motley Fool analyst Bill Barker and host Ricky Mulvey discuss:Legislation to ban DeepSeek on U.S. government devices.Hershey's quarter, and what it reveals about American eating habits.Eli Lilly's blockbuster weight loss drugs, and questions about its valuation.Then, Ricky continues his conversation with writer Jordan Harper about the challenges of making TV and movies in the streaming era.To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get st ...

Core Viewpoint - The Hershey Company is conducting a public offering of notes to repay existing debt and for general corporate purposes [1][2]. Group 1: Notes Offering Details - The net proceeds from the Notes Offering will be used to repay all outstanding 0.900% Senior Notes due 2025 and 3.200% Senior Notes due 2025, as well as certain short-term commercial paper borrowings, including accrued and unpaid interest [1]. - A registration statement for the Notes Offering has been filed with the U.S. Securities and Exchange Commission and is effective [2]. Group 2: Company Overview - The Hershey Company is headquartered in Hershey, Pennsylvania, and is recognized as an industry-leading snacks company with over 20,000 employees globally [4]. - The company offers more than 90 brand names in approximately 80 countries, including popular products like Hershey's, Reese's, and Kit Kat [4]. - Hershey has a long-standing commitment to ethical operations and community support, exemplified by the establishment of the Milton Hershey School in 1909 [5].