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Should Upcoming Earnings Require Action From Hershey (HSY) Investors?

Simply Wall St · 2d ago
  • Hershey is preparing to report third quarter results on October 29, 2026, after a prior period in which net sales grew 6.6% and adjusted EPS rose 57%, supported by price increases and lower cocoa costs despite an 8% volume decline.
  • An interesting angle is how Hershey leans on pricing, input cost relief and a richer Halloween assortment to support earnings while managing volume pressure, tariffs and weather linked agricultural risks at the same time.
  • We will now look at how expectations for Hershey's earnings momentum around Halloween could reshape the broader investment narrative for the business.

Scan how Hershey's Halloween heavy earnings story compares with other consumer stocks that rely on pricing power and strong balance sheets by using the curated list of solid balance sheet and fundamentals (25 results)

Hershey Investment Narrative Recap

For Hershey, the basic belief you would need as a shareholder is that pricing power, Halloween led seasonal demand and a broader snacking portfolio can offset volume pressure and tariff or weather related cost noise. The coming third quarter print is still mainly about proving that the richer Halloween assortment and new items can support earnings without worsening the volume decline.

The biggest near term catalyst is whether Halloween heavy results show any stabilisation in North America Confectionery volume while holding margins that benefited from lower cocoa costs earlier in the year. The main risk is that heavy reliance on price in confectionery and ongoing share losses limit how long Hershey can lean on pricing without more visible volume progress.

The most relevant update here is Hershey’s decision to lean into a bigger innovation slate and expanded Halloween offerings in the second half of 2026, supported by higher brand spending. With earnings set to reflect those efforts on October 29, the key question is whether that extra assortment converts to healthier sell through rather than just more SKUs on shelf.

Those new platforms in both chocolate and salty snacks, combined with automation investments scheduled in salty snacks and added capacity in early 2027, give management more levers to offset tariffs and any El Niño linked agricultural cost swings. For you as an investor, the focus is on how effectively Hershey executes that playbook while the stock trades at a premium P/E and carries higher debt.

What The Current Hershey Consensus Is Baking In

Hershey's narrative projects US$13.1b revenue and US$2.1b earnings by 2029. This rests on analysts building in 2.6% yearly revenue growth and an earnings increase of about US$600m from US$1.5b today.

Uncover why Hershey's fair value indicates a 20% potential upside to its current price, a discount that could narrow quickly as sentiment shifts.

NYSE:HSY 1-Year Stock Price Chart
NYSE:HSY 1-Year Stock Price Chart

Exploring Other Perspectives

One more upbeat angle on Hershey focuses on cocoa cost visibility. The most optimistic analysts were estimating revenue of about US$13.4b and earnings of roughly US$2.5b by 2029, well above the consensus US$2.1b. With the stock dipping ahead of Halloween earnings, those pre-news forecasts may be tested quickly.

Explore 6 other Hershey fair value estimates, including one that suggests as much as 77% upside from the current price.

The Verdict Is Yours

Disagree with existing narratives? Following the herd rarely leads to extraordinary investment outcomes, so consider trusting your own analysis.

Looking For More Investment Ideas Beyond Hershey?

If Hershey's Halloween heavy set up has you thinking about portfolio balance, it can help to line it up against other opportunities with different risk and return profiles. The Simply Wall St Screener gives you a fast way to filter for stocks that match the kind of financial traits you want to focus on next.

  • For investors who want potential mispricings with stronger fundamentals, start by reviewing 35 high quality undervalued stocks that pair solid balance sheets with room for sentiment to catch up.
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