Hershey Co. Updates Fiscal 2025 Outlook Amid New Strategies and Revised Earnings Projections

Hershey Co. updated its fiscal 2025 outlook with a minimum revenue growth of 2%. The company revised its earnings per share predictions, excluding the impact of acquiring LesserEvil, and adjusting for estimated full-year tariff expenses and recent measures to mitigate commodity costs. Hershey commands 36% of the US chocolate market and has a market capitalization of approximately $37.73 billion. Its financial health is underscored by robust margins, adequate liquidity, and a manageable level of leverage. However, insider selling activity and a high valuation multiple warrant attention.

Title: Hershey Co. Updates Fiscal 2025 Outlook; Stock Gains Amid Market Optimism

Hershey Co. (HSY), a leading player in the US chocolate market, has updated its fiscal 2025 outlook, projecting a minimum revenue growth of 2%. The company revised its earnings per share (EPS) predictions, excluding the impact of acquiring LesserEvil and adjusting for estimated full-year tariff expenses and recent measures to mitigate commodity costs. Hershey commands a 36% share of the US chocolate market and boasts a market capitalization of approximately $37.73 billion.

The company reported its second-quarter earnings for 2025, exceeding analyst expectations with an EPS of $1.21, compared to the forecasted $0.99. Revenue reached $2.61 billion, surpassing the projected $2.52 billion. This 22.22% surprise in EPS, accompanied by a 26% year-over-year net sales growth, underscores Hershey's robust performance. The stock price rose 1.41% in premarket trading, reaching $188.85 [1].

Hershey's financial health is underscored by strong margins, adequate liquidity, and a manageable level of leverage. The company's "GOOD" overall Financial Health Score of 2.89, with particularly strong marks in profitability metrics, reflects its robust financial position. However, insider selling activity and a high valuation multiple warrant attention.

The company anticipates a 2-4% growth acceleration in the second half of the year, supported by new product launches and strategic pricing actions. CEO Michelle Bock expressed confidence in the company’s trajectory, stating, "We are confident in the underlying trajectory of our business." CFO Steve Bockholt added, "We will mitigate our tariff exposures over time if they endure," highlighting the company’s proactive measures in addressing external challenges [1].

Rising cocoa input costs could pressure margins in 2026, and international segment growth remains soft, particularly in Mexico. Potential tariff impacts may affect profitability. Market saturation in non-seasonal candy and gum segments, and macroeconomic factors influencing consumer spending, are also risks to watch [1].

Hershey’s stock remains within its 52-week range, with a high of $208.03 and a low of $140.13. Despite the recent gains, the stock appears overvalued relative to its Fair Value, according to InvestingPro analysis.

References:
1. [Hershey Co. Earnings Call Transcript](https://za.investing.com/news/transcripts/earnings-call-transcript-hershey-co-beats-q2-2025-earnings-expectations-93CH-3810731)