Hershey (NYSE:HSY) Declares Dividends As Earnings Show US$225 Million Net Income Drop

The Hershey Company (NYSE:HSY) recently reaffirmed its dividend payouts and released a lower year-over-year earnings report for Q1 2025, amidst expectations of modest sales growth and a significant EPS decline for the full year. Over the last quarter, the company's stock price experienced a 10% increase. This movement parallels the upward trend in broader markets, influenced by strong technology earnings that propelled indices like the S&P 500 and the Dow. Hershey's consistent dividend distributions perhaps provided some stability, yet did not significantly counter or enhance the larger market movements observed during this period.

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The Hershey Company's Q1 2025 earnings report, with lower year-over-year results, contrasts with its reaffirmed dividend, impacting investor sentiment. While the company's stock rose 10% in the last quarter, mirroring market trends, Hershey's shares have experienced a 41.96% total return, including dividends, over the past five years. This longer-term performance provides a broader context, indicating that despite recent pressures, the company has been resilient over time.

In the past year, Hershey underperformed compared to the US Food industry, which experienced a negative return of 7.9%. The current earnings and revenue forecasts may be challenged by elevated cocoa costs and changing consumer trends toward healthier products. Analysts expect earnings to decrease from US$2.2 billion today to US$1.7 billion by April 2028, with projected revenue growth of 2.4% annually over the next three years. With these forecasts in mind, the recent stock price movement of Hershey, currently valued at US$165.07, aligns closely with the analyst consensus price target of US$165.86, suggesting the stock might be fairly priced at present. However, the potential weak international segment growth and consumer trends could alter these projections.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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