Hershey (HSY) Stock Forecast & Price Target

Hershey's has demonstrated a positive financial outlook with a 6% increase in confectionery sales, driven by a 2% volume rise and 4% pricing actions, showcasing the brand's ability to adapt despite challenges in the convenience channel. The North America Salty Snacks segment achieved a remarkable 36% organic sales increase, aided by promotional shifts and ongoing product strength, further diversifying Hershey's portfolio beyond traditional confectionery. Seasonal strength contributed to retail sales growth in the fourth quarter, with Halloween and Holiday sales improving by 7.6% and 3.3% year-over-year, respectively, indicating robust consumer demand and market share gains.

Hershey's projected FY25 earnings per share (EPS) is estimated to decline by approximately 35%, primarily driven by significant cocoa inflation, increased taxes, and rebased incentive compensation, which are expected to offset any benefits from pricing and cost-saving measures. The company's initial guidance anticipates only 2% sales growth, with the salty snacks segment experiencing substantial headwinds, including a 14% decline in organic sales and order execution issues. Additionally, challenges in the ready-to-eat popcorn category have contributed to a base business decline, resulting in a loss of market share and further exacerbating concerns regarding the firm's overall financial outlook.