Hershey Q4 sales beat estimates higher price realization and retail demand

Overview

• Confectionery giant's Q4 net sales rose 7%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• North America Salty Snacks segment grew 28%, aided by LesserEvil acquisition

Outlook

• Hershey expects 2026 full-year net sales to grow 4% to 5%

• Company projects 2026 full-year adjusted EPS of $8.20 to $8.52

• Acquisitions expected to add 150 basis points to 2026 net sales growth

Result Drivers

• PRICE REALIZATION - Hershey's Q4 net sales increase driven by favorable net price realization and an additional shipping day, partially offset by volume declines due to price elasticity

• SALTY SNACKS GROWTH - North America Salty Snacks segment grew 28%, driven by LesserEvil acquisition and strong retail demand

• HIGHER COSTS - Increased commodity costs and tariff expenses led to a decline in gross margin, despite price realization and productivity gains

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 17 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Hershey Co is $200.00, about 2.8% below its February 4 closing price of $205.79

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nPn25Wj3qa

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