Hershey Projects Strong 30-35% Adjusted EPS Growth for 2026 Despite Mixed Q4 Results
summarizeSummary
Hershey announced mixed fourth-quarter 2025 results with sales growth but declining adjusted EPS, while providing a robust 2026 outlook projecting 30-35% adjusted earnings per share growth.
check_boxKey Events
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Strong 2026 Adjusted EPS Outlook
Hershey projects 30-35% adjusted earnings per share growth for full-year 2026, driven by anticipated sales growth and gross margin recovery.
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Mixed Q4 2025 Performance
Fourth-quarter net sales increased 7.0% to $3.09 billion, but adjusted diluted EPS decreased 36.4% to $1.71, primarily due to higher commodity costs, tariff expenses, and a significant derivative mark-to-market loss in 2025.
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North America Salty Snacks Growth
The North America Salty Snacks segment delivered robust organic constant currency net sales growth of 18.2% in Q4 2025, with segment income increasing 38.1%.
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International Segment Weakness
The International segment reported a loss of $31.6 million in Q4 2025, a significant decline from a profit in the prior year, due to higher commodity costs and lower volume.
auto_awesomeAnalysis
The Hershey Company's latest earnings report presents a mixed picture for Q4 and full-year 2025, with solid sales growth offset by significant declines in reported and adjusted earnings per share. These declines are largely attributable to non-cash derivative mark-to-market losses and increased commodity and tariff costs. However, the forward-looking 2026 guidance is notably strong, projecting a substantial 30-35% increase in adjusted earnings per share. This positive outlook, driven by anticipated sales growth and gross margin recovery, is likely to be the primary focus for investors, signaling a strong operational rebound and improved profitability in the coming year. The stock is currently trading above its 52-week high, and this robust guidance could further support investor confidence. While the North America Salty Snacks segment showed strong performance, the International segment continues to face challenges.
At the time of this filing, HSY was trading at $213.20 on NYSE in the Manufacturing sector, with a market capitalization of approximately $41.7B. The 52-week trading range was $140.13 to $205.96. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.