The Hershey Company (HSY), with a market cap of around $37 billion, operates in the confectionery and pantry items sector, manufacturing and selling a wide range of products both domestically and internationally. The Pennsylvania-based company is expected to announce its fiscal Q2 earnings results before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect the iconic chocolate maker to report a profit of $1.45 per share, down 27.9% from $2.01 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. Robust consumer demand and increased prices helped the company exceed the consensus EPS estimate by 12% in the most recent quarter.
For fiscal 2024, analysts expect HSY to report an EPS of $9.59, consistent with the EPS reported in fiscal 2023. Looking ahead to fiscal 2025, EPS is anticipated to increase marginally, reaching $9.64.
Over the past 52 weeks, HSY has declined 24.8%, underperforming both the S&P 500 Index's ($SPX) 26.8% rise and the S&P 500 Cons Staples Sector SPDR's (XLP) 4.9% increase over the same period.
Hershey's stock saw a 4.1% rise on Feb. 8 following its Q4 2023 earnings report, despite mixed results. The rise can be attributed to management's announcement of a 15% dividend increase and plans to enhance operational efficiency through automation, which overshadowed concerns about rising cocoa costs impacting earnings in 2024.
Moreover, the stock surged on May 3 after its Q1 earnings results, as Hershey exceeded Wall Street expectations for sales and profit, driven by higher prices on chocolates and candies amid strong consumer demand during holidays like Easter and Thanksgiving, particularly in the North America confectionery market.
Analysts' consensus view on HSY stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 21 analysts covering the stock, five recommend a "Strong Buy," and 16 give a "Hold" rating. This consensus is slightly less bullish than three months ago, with six analysts suggesting a "Strong Buy." The average analyst price target for HSY is $208.75, suggesting a potential upside of 14.2% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
