Unleashing Chocolate's Financial Fury: Hershey Company (HSY)
Wall Street analysts' forecasted value for Hershey's stock investment
Strap in and let's dive into the worldwide chocolate confectionery Empire that is The Hershey Company (HSY). With a galloping market cap of a whopping $34.6 billion, Hershey's choco-business stretches across around 80 countries, melting hearts and wallets globally.
The company dishes out its sweet treats through three primary segments: North America Confectionery, North America Salty Snacks, and International.
Beating the Broader Market Drum... Not for HSY
Hershey, nestled in the heart of Hershey, Pennsylvania, has taken a hit, underperforming the bustling S&P 500 Index ($SPX) over the last 52 weeks. Watch your back, HSY, as it's taken a crippling 14.6% dive compared to the index's impressive 8.6% surge. Yet, it manages a mild victor lap for the year, outpacing the SPX's 3.8% tumble.
"Create Your Own Paycheck?" With HSY, Dream Big!
For those yearning for guaranteed returns, Hershey promises a juicy 5.80% fixed annual yield! Ready to delve deeper into market insights? Our website's Active Investor newsletter has got your back.
Q1 2025 Earnings Swings: A Sweet or Sour Aftertaste?
Narrowing our focus, Hershey has stumbled behind the Consumer Staples Select Sector SPDR Fund (XLP) by 4.8% over the same 52-week period. Although it served up better-than-expected adjusted EPS of $2.09 for Q1 2025, its shares unfortunately slipped on May 1st. The reason? A 31.9% plummet in year-over-year EPS and a net sales dip of 13.8% to $2.8 billion, leaving investors a tad miffed.
The sales slump is pinned on holiday timing shifts, reduced shipping days, and inventory headwinds from ERP-related hiccups. To make matters more appetizing, management has announced a full-year adjusted EPS forecast of $6 - $6.18 – a 30% drop compared to 2024 – causing yet another round of grumbles.
Peering Beyond the Cocoa Clouds
For the fiscal year wrapping up in December 2025, analysts expect HSY's adjusted EPS to plummet 36.4% year-over-year to a modest $5.96. Hershey's earnings surprise history is as unpredictable as a cocoa bean, having bested consensus estimates in two of the last four quarters, but also missing on the other two occasions.
Analysts' Take: Split Decision on HSY
Among the 23 analysts keeping an eye on the chocolate bar and candy king, the consensus opinion is a "Hold". Half the analysts propose a "Hold", one calls for a "Strong Buy", while a quarter think it's time to "Sell Strong".
On May 5th, analyst Andrew Lazar from Barclays upped his "Equal-Weight" rating on Hershey and set a new price target at $165. As of now, HSY is trading above the average price target of $159.82. The highest predicted price target of $211 indicates a potential profit of a tantalizing 23.5%.
Keep in mind that as of the publication date, Sohini Mondal did not hold any positions in any of the securities mentioned in this article. All information here is for informative purposes only. For further disclosure details, head on over to our website.
Investing in the Hershey Company (HSY) presents a unique opportunity for potential returns, as the company offers a fixed annual yield of 5.80%. However, HSY has underperformed the S&P 500 Index over the past 52 weeks, losing 14.6% compared to the index's 8.6% growth, suggesting caution may be needed in finance and business decisions related to this chocolate confectionery empire.
