Hershey's Trading Volume Surges 32% to 398th Position Amidst Earnings Concerns

On April 28, 2025, The Hershey Company (HSY) recorded a trading volume of $211 million, marking a 32.01% increase from the previous day. This surge placed HSY at the 398th position in terms of trading volume for the day.

Hershey is preparing to report its first-quarter 2025 earnings on May 1, with analysts projecting a decline in both revenue and earnings. The consensus estimate for revenue is $2.82 billion, indicating a 13.3% decrease from the previous year's quarter. Earnings per share are expected to drop by 36.8% to $1.94, reflecting a 2-cent decrease over the past 30 days. Despite these challenges, HSY has maintained an average earnings surprise of 1.7% over the past four quarters.

Hershey is facing significant headwinds due to historically high cocoa prices and a financially strained consumer base. These factors are expected to result in a 410 basis point contraction in the adjusted gross margin for the first quarter of 2025. Economic uncertainty has led consumers to prioritize essential purchases, reducing foot traffic to convenience and drug stores where Hershey's brands are traditionally strong. This shift has negatively impacted impulse sales and contributed to a loss of market share in the core everyday chocolate category.

While take-home chocolate sales are showing signs of recovery, the convenience store channel remains weak. Increased competition from smaller, more agile brands is further eroding Hershey's market share. Additionally, evolving consumer preferences are driving more shopping at club, dollar, and online channels, areas where Hershey's product offerings are underdeveloped. Tighter inventory management by retailers is also impacting Hershey's North America operations, with projected declines in sales for both the North America Confectionery and Salty Snacks segments.