Hershey Reports Strong Q4 Earnings, Raises Dividend
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy HSY?
Source: Benzinga
- Earnings Beat: Hershey's fourth-quarter adjusted earnings per share reached $1.71, surpassing the analyst consensus estimate of $1.40, demonstrating the company's resilience amid high-cost pressures.
- Significant Sales Growth: Quarterly sales totaled $3.09 billion, a 7% year-over-year increase that exceeded market expectations of $2.98 billion, indicating strong product demand.
- Margin Compression: Adjusted gross margin decreased by 650 basis points to 38.3%, primarily due to rising commodity costs and increased tariff expenses, reflecting the challenges in the current market environment.
- Dividend Increase: Hershey raised its quarterly dividend by 6% to $1.452 per share, showcasing confidence in future cash flows while attracting investor interest.
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Analyst Views on HSY
Wall Street analysts forecast HSY stock price to fall
17 Analyst Rating
3 Buy
14 Hold
0 Sell
Hold
Current: 226.260
Low
181.00
Averages
196.27
High
222.00
Current: 226.260
Low
181.00
Averages
196.27
High
222.00
About HSY
The Hershey Company is a snacks company. The Company's segments include North America Confectionery, North America Salty Snacks and International. The North America Confectionery segment is responsible for its traditional chocolate and non-chocolate confectionery market position in the United States and Canada. This includes its business in chocolate and non-chocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. This segment also includes its retail operations. The North America Salty Snacks segment is responsible for its salty snacking products in the United States. This includes ready-to-eat popcorn, baked and trans fat free snacks, pretzels and other snacks. The Company's portfolio includes chocolate and confectionery brands such as Hershey's, Reese's, Kisses, Kit Kat, Jolly Rancher, Ice Breakers, LesserEvil, Shaq-a-licious alongside salty snacks, including SkinnyPop and Dot's Homestyle Pretzels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- High Demand Call Options: Notably, the $60 strike call option expiring on March 20, 2026, has seen 3,340 contracts traded today, representing about 334,000 underlying shares, suggesting investor expectations for future price increases.
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- Significant Call Option Trading: The $185 strike call option expiring on February 20, 2026, has seen a trading volume of 4,665 contracts today, representing around 466,500 underlying shares, indicating optimistic sentiment among investors regarding Hershey's future performance.
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- Increased Average Expenditure: The survey indicates that the average consumer will spend approximately $200 on gifts, up from last year's average of $188.81, reflecting a growing willingness to invest in gifts.
- Diverse Gift Choices: Popular gifts include candy, flowers, greeting cards, dining experiences, and jewelry, with jewelry projected to account for $7 billion in spending, highlighting consumers' preference for luxury items.
- Shift in Shopping Channels: Online shopping remains the primary channel, followed by department stores, discount stores, and specialty shops, indicating a gradual shift towards digital shopping as consumers adapt to new spending trends.
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- Market Trends: These overbought signals suggest that investors chasing short-term gains may overlook potential market correction risks, leading to increased price volatility in the future, which could impact overall investment strategies.
- Investor Caution: For momentum-driven investors, the current overbought status may necessitate a reassessment of holdings to avoid significant losses during market corrections, highlighting the importance of risk management.
- Sector Analysis: The overbought phenomenon in the consumer staples sector may signal a shift in overall market sentiment, prompting investors to monitor industry dynamics closely to adjust their portfolios timely and maintain competitiveness in a volatile market.
See More
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- Money Flow Analysis: In early trading, positive money flows were observed in Amazon, Microsoft, Nvidia, and Tesla, indicating investor confidence in these tech giants, which could further drive their stock prices upward.
- Market Concentration Issues: Most portfolios are now heavily concentrated in the 'Magnificent Seven' stocks, which may lead to increased market volatility, prompting investors to be mindful of potential risks and reward balances.
- Bitcoin Trading Status: Bitcoin is currently trading below $70,000, failing to maintain this psychological support level, which is disappointing for bullish investors and may affect overall market sentiment.
- Investment Strategy Recommendations: Investors are advised to continue holding long-term quality assets while adding tactical positions based on market signals to navigate the current uncertainty and volatility.
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See More
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- Earnings Season Impact: Despite 150 S&P 500 companies set to report earnings this week, market focus on economic data intensifies, with S&P 500 earnings expected to grow by 8.4% in Q4, yet overall market sentiment remains suppressed by recent economic weakness.
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