Hersheys Earnings Surge Outpace 410th Ranked Trading Volume Slide

Generated by AI AgentAinvest Market Brief
Tuesday, Aug 12, 2025 6:49 pm ET1min read
Aime RobotAime Summary

- Hershey’s stock closed up 0.60% despite a 54.39% drop in trading volume to $0.26 billion, ranking 410th in market activity.

- Q2 revenue surged 26% to $2.61 billion, driven by 21% higher sales volumes and brand innovation, with non-GAAP EPS of $1.21 exceeding estimates by 20.4%.

- Management cited pricing actions and cost recovery to offset margin pressures, though cocoa inflation and operating margin contraction to 7.4% highlight ongoing challenges.

- A top-500 volume strategy yielded $2,550 profit (2022–2025) but faced a -15.2% drawdown in October 2022, underscoring market volatility risks.

On August 12, 2025,

(HSY) reported a trading volume of $0.26 billion, a 54.39% decline from the previous day, ranking it 410th in market activity. The stock closed up 0.60%, reflecting mixed investor sentiment following mixed market conditions.

Hershey’s second quarter results exceeded expectations, with revenue rising 26% year-on-year to $2.61 billion, driven by a 21% increase in sales volumes. Non-GAAP earnings per share of $1.21 beat estimates by 20.4%, supported by brand innovation and expanded distribution. CEO Michele Buck highlighted "top line momentum" and strategic reinvestment in marketing and technology as key drivers, though operating margin contraction to 7.4% from 13.9% underscored ongoing commodity cost pressures, particularly cocoa inflation.

Management emphasized pricing actions and cost recovery initiatives to offset margin pressures, with CFO Steve Voskuil noting that recent price hikes would not fully offset inflation. Forward guidance focused on sustained innovation, supply chain optimization, and gross margin expansion, though cocoa tariffs and input cost volatility remain risks. Salty snacks outperformed a challenging category, driven by better-for-you product lines and multipack strategies.

A backtested strategy of buying the top 500 stocks by daily volume and holding for one day yielded a $2,550 profit from 2022 to the present. However, the approach experienced a maximum drawdown of -15.2% on October 27, 2022, highlighting the strategy’s volatility and susceptibility to market downturns.

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