Zacks Research Weighs in on The Hershey Company’s Q3 2024 Earnings (NYSE:HSY)

The Hershey Company (NYSE:HSY) – Equities research analysts at Zacks Research boosted their Q3 2024 earnings per share (EPS) estimates for Hershey in a research note issued on Thursday, August 22nd. Zacks Research analyst A. Mohta now expects that the company will earn $2.81 per share for the quarter, up from their previous estimate of $2.76. The consensus estimate for Hershey’s current full-year earnings is $9.59 per share. Zacks Research also issued estimates for Hershey’s Q4 2024 earnings at $2.35 EPS, Q2 2025 earnings at $1.56 EPS, Q3 2025 earnings at $2.57 EPS, FY2025 earnings at $9.28 EPS, Q2 2026 earnings at $1.63 EPS and FY2026 earnings at $9.86 EPS.

Hershey (NYSE:HSY) last posted its quarterly earnings data on Thursday, August 1st. The company reported $1.27 EPS for the quarter, missing the consensus estimate of $1.44 by ($0.17). Hershey had a net margin of 16.76% and a return on equity of 45.36%. The firm had revenue of $2.07 billion during the quarter, compared to analysts’ expectations of $2.30 billion. During the same quarter in the previous year, the company posted $2.01 EPS. Hershey’s revenue for the quarter was down 16.7% on a year-over-year basis.

Several other equities research analysts also recently issued reports on the company. Sanford C. Bernstein dropped their target price on Hershey from $237.00 to $230.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 17th. JPMorgan Chase & Co. increased their target price on Hershey from $183.00 to $188.00 and gave the company a “neutral” rating in a research note on Friday, August 2nd. Royal Bank of Canada reduced their target price on Hershey from $209.00 to $205.00 and set a “sector perform” rating on the stock in a research note on Friday, August 2nd. Argus lowered shares of Hershey from a “buy” rating to a “hold” rating in a report on Wednesday, August 14th. Finally, Piper Sandler reiterated a “neutral” rating and set a $179.00 target price on shares of Hershey in a report on Friday, June 21st. Two equities research analysts have rated the stock with a sell rating, sixteen have given a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $203.47.

Hershey Price Performance

Hershey stock opened at $196.33 on Monday. The company has a market cap of $39.70 billion, a price-to-earnings ratio of 19.46, a PEG ratio of 4.96 and a beta of 0.36. The business’s 50 day simple moving average is $191.11 and its 200 day simple moving average is $193.27. Hershey has a 12 month low of $178.82 and a 12 month high of $219.92. The company has a current ratio of 0.86, a quick ratio of 0.64 and a debt-to-equity ratio of 0.87.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of HSY. Vanguard Group Inc. boosted its stake in shares of Hershey by 14.2% during the 1st quarter. Vanguard Group Inc. now owns 17,341,721 shares of the company’s stock worth $3,372,965,000 after acquiring an additional 2,158,912 shares during the last quarter. Norges Bank purchased a new position in shares of Hershey during the 4th quarter valued at $349,448,000. Confluence Investment Management LLC lifted its stake in shares of Hershey by 297.9% during the 2nd quarter. Confluence Investment Management LLC now owns 717,831 shares of the company’s stock valued at $131,959,000 after buying an additional 537,419 shares in the last quarter. Massachusetts Financial Services Co. MA purchased a new position in shares of Hershey during the 2nd quarter valued at $82,123,000. Finally, Bryn Mawr Capital Management LLC lifted its stake in shares of Hershey by 3,404.3% during the 1st quarter. Bryn Mawr Capital Management LLC now owns 256,447 shares of the company’s stock valued at $49,879,000 after buying an additional 249,129 shares in the last quarter. Hedge funds and other institutional investors own 57.96% of the company’s stock.

Insider Activity at Hershey

In related news, CAO Jennifer Mccalman sold 538 shares of the firm’s stock in a transaction that occurred on Monday, August 12th. The shares were sold at an average price of $199.17, for a total transaction of $107,153.46. Following the completion of the sale, the chief accounting officer now owns 3,238 shares of the company’s stock, valued at $644,912.46. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In other Hershey news, CAO Jennifer Mccalman sold 538 shares of Hershey stock in a transaction that occurred on Monday, August 12th. The shares were sold at an average price of $199.17, for a total value of $107,153.46. Following the completion of the sale, the chief accounting officer now owns 3,238 shares of the company’s stock, valued at approximately $644,912.46. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Steven E. Voskuil sold 1,500 shares of Hershey stock in a transaction that occurred on Tuesday, July 23rd. The stock was sold at an average price of $190.83, for a total transaction of $286,245.00. Following the completion of the sale, the chief financial officer now directly owns 34,228 shares of the company’s stock, valued at approximately $6,531,729.24. The disclosure for this sale can be found here. Insiders sold 3,538 shares of company stock valued at $667,793 over the last 90 days. Corporate insiders own 0.34% of the company’s stock.

Hershey Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 16th. Investors of record on Friday, August 16th will be given a dividend of $1.37 per share. This represents a $5.48 annualized dividend and a dividend yield of 2.79%. The ex-dividend date of this dividend is Friday, August 16th. Hershey’s dividend payout ratio (DPR) is currently 54.31%.

Hershey Company Profile

The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; protein bars; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, bars, snack bites, mixes, popcorn, and pretzels.