Hershey Q2 Print Unlikely to Be Meaningful Catalyst, UBS Says

MT Newswires Live07-23 03:54

Hershey's (HSY) fiscal Q2 results are unlikely to be a meaningful catalyst in either direction as the company is expected to maintain its full-year outlook, UBS Securities said.

The company is scheduled to report its fiscal Q2 results Thursday before the market opens.

UBS said in a note Tuesday the chocolate maker has underperformed its XLP and packaged food peers by 6.7% and 10.2%, respectively, since reporting Q1 earnings, as volatile tracked data, rising cocoa costs and concerns on the broader competitive environment have weighed down investor sentiment.

The investment firm forecasts the company will report Q2 EPS of $1.38, below the Visible Alpha consensus estimate of $1.43. It expects Hershey to reiterate its fiscal 2026 guidance, including net sales growth of 4% to 5% and EPS growth of 30% to 35%.

Investors will be closely watching for updates on the company's second-half sales trajectory and greater clarity on fiscal 2027 EPS growth, according to the note.

UBS maintained its neutral rating and price target of $190.

Price: 171.63, Change: +1.00, Percent Change: +0.58

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