HSY Earnings Prediction
The chart below shows how HSY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HSY sees a -3.29% change in stock price 10 days leading up to the earnings, and a +0.99% change 10 days following the report. On the earnings day itself, the stock moves by +1.49%. This data can give you a slight idea of what to expect for the next quarter's release.
HSY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.89B
8.67%
-3.35%
Gross Margin
53.97%
27.68%
30.65%
Operating Margin
32.97%
88.72%
48.71%
Net Margin
27.59%
109.97%
84.67%
EPS
3.09
130.60%
78.61%
No Data Available
HSY Earnings Analysis
Hershey Co Corporation (HSY.N) Earnings Conference Call
Positive
Cocoa Pricing Strategies: Cocoa price management strategies are in place, with 80% of the portfolio priced under $4, allowing for flexibility in pricing decisions.
Pricing Strategy Performance: Elasticity of pricing is performing on par or slightly better than expectations, indicating confidence in pricing strategies moving forward.
Sweets Portfolio Performance: The fourth quarter saw a strong performance in the sweets portfolio, driven by successful product launches and innovation, contributing to overall growth.
Inventory Valuation Improvement: The company reported a $40 million positive impact from improved inventory valuation due to a new ERP system, enhancing financial precision.
Seasonal Product Growth: Strong growth is anticipated in the seasonal product category, supported by favorable timing and consumer engagement, particularly with the upcoming Easter season.
Negative
Chocolate Market Share Decline: Market share declines in everyday chocolate were noted, with volume down about 5% in 2024, worse than the previous year, indicating ongoing competitive pressures and potential demand destruction.
Projected Low Growth: The company anticipates low single-digit growth in 2025, attributed to heightened competitive activity, particularly in Brazil and Mexico, which may hinder overall performance.
Gross Margin Decline Forecast: Gross margin pressure is expected to increase in the second half of the year, with a projected decline of over 500 basis points due to cocoa price inflation and other commodity costs.
Conservative Growth Expectations: The guidance for 2025 includes a conservative elasticity assumption of minus one, reflecting cautious expectations in a volatile consumer marketplace, which may limit growth potential.
International Segment Growth Outlook: International segment growth is projected to be low single digits, impacted by competitive activity and a less favorable outlook compared to previous performance.
HSY FAQs
How does HSY typically perform around its earnings report dates?
Is Hershey Co (HSY) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
HSY Earning Call Sentiment
Earnings call transcript: Hershey Co Q4 2024 beats EPS forecast, stock surges
HSY.N
-3.66%Positive
The earnings call summary indicates mixed signals: low single-digit growth expectations, competitive pressures internationally, and gross margin pressures due to high cocoa prices. While the company is optimistic about managing cocoa costs and seeing growth in their sweets portfolio, international competition and muted sales outlook for 2025 counterbalance this optimism. The Q&A section reflects management's confidence but also highlights challenges, leading to a neutral sentiment. Without market cap data, the stock's reaction could be moderate, hence a neutral prediction.
