Abstract
Hershey will release its quarterly results on February 05, 2026 Pre-Market; this preview synthesizes recent performance, segment dynamics, and consensus forecasts to frame revenue, margins, net income, and adjusted EPS expectations alongside institutional sentiment since January 01, 2026.
Market Forecast
For the current quarter, Hershey’s total revenue is projected at $2.98 billion, with an estimated adjusted EPS of $1.40 and EBIT of $0.43 billion; year over year, revenue is expected to increase by 4.83%, while adjusted EPS is expected to decline by 40.93% and EBIT to decline by 29.19%. The main confectionery and confectionery-based portfolio remains the anchor, and snacks contribute incremental breadth; the outlook emphasizes disciplined pricing, retail sell-through normalization post-season, and commodity cost management. The most promising segment is identified as confectionery and confectionery-based products, which generated $2.62 billion last quarter and is expected to benefit from steady seasonal category demand and resilient brand equity, though near-term growth rates may compress against a strong base.
Last Quarter Review
In the previous quarter, Hershey recorded revenue of $3.18 billion, a gross profit margin of 32.61%, GAAP net profit attributable to the parent company of $0.28 billion, a net profit margin of 8.69%, and adjusted EPS of $1.30; year over year, revenue increased by 6.49% and adjusted EPS declined by 44.44%. A notable highlight was a sizeable quarter-on-quarter swing in GAAP net profit, reflecting seasonal leverage and operational efficiency versus prior quarter dynamics, with ran-on-month (quarter-on-quarter) growth of 340.57%. Main business highlights: confectionery and confectionery-based products generated $2.62 billion and snacks contributed $0.32 billion, marking an aligned mix that underscores category leadership and portfolio breadth; segment-level year-over-year growth details were not disclosed in the last report.
Current Quarter Outlook
Main Confectionery Portfolio
The core confectionery and confectionery-based portfolio remains central to Hershey’s quarterly trajectory, especially surrounding holiday and early-year promotional resets. After a strong seasonal quarter, retail sell-in and sell-through typically normalize, and price/mix tends to smooth as promotional calendars reset across large retail partners. Category demand signals appear steady, and while top-line is projected to grow by 4.83%, the implied margin pressure—seen in the expected EPS and EBIT declines—suggests input costs and brand investment may weigh on profitability in the near term. Strategic emphasis on product availability, distribution consistency, and measured promotional cadence is likely to aim at supporting volume resilience without overtly compressing unit economics, helping the company protect gross margin rates even as EPS faces pressure.
Most Promising Segment: Confectionery and Confectionery-Based Products
The largest growth potential continues to reside in the confectionery franchise, which delivered $2.62 billion last quarter and is expected to carry momentum from sustained brand equity and category leadership. Seasonal timing, particularly in the quarter spanning late-year holidays and early-year occasions, typically supports predictable replenishment patterns and shelf resets that favor established brands. However, the forecasted EPS contraction by 40.93% indicates that while revenue growth is plausible, operating leverage may be constrained by cost inflation, targeted investments in media and retail execution, and potential shifts in consumer mix toward value channels. The near-term focus will likely be balancing core brand support with cost discipline, which could position the segment to maintain share while margins normalize from elevated procurement costs in prior periods.
Stock Price Drivers This Quarter
This quarter’s stock price drivers are expected to be a combination of revenue trajectory versus consensus, margin resilience against commodity and logistics cost variability, and management’s narrative on pricing, promotions, and portfolio priorities. Any measured progress on gross margin stabilization near the 32.61% level, alongside improving visibility on EPS recovery cadence, would be a near-term sentiment uplift. Investors may closely parse commentary on input cost trends, promotional intensity, and innovation cadence to gauge whether margin headwinds are transient or structural. Guidance updates for the year, or signals about spring and summer seasonal performance, could act as swing factors for the stock’s short-term direction.
Analyst Opinions
Institutional commentary in the recent period has largely framed Hershey’s near-term as a margin-rebuilding phase, reflecting caution on profit normalization despite steady revenue outlook; the majority view is cautiously neutral to guarded, emphasizing revenue stability against EPS pressure. Several well-followed research desks have highlighted the dichotomy between top-line growth of 4.83% and the expected declines in EBIT and adjusted EPS, noting category resilience but a lower near-term earnings run rate as input costs and brand investments weigh on profitability. Consensus previews also indicate investors are likely to reward signs of cost discipline and clarity on pricing strategy more than incremental top-line upside, given the notable year-over-year EPS contraction embedded in forecasts. Analysts point toward the importance of the upcoming commentary around promotional cadence, innovation pipeline within confectionery, and any early reads on the spring seasonal build as key determinants of whether earnings cadence can improve into subsequent quarters. This majority stance implies a market leaning towards confirmation of margin stabilization over outright top-line surprises, positioning Hershey’s update as a barometer for balancing growth with disciplined cost control.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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