The Hershey Company, known for its confectionery products, is facing a mixed reaction from Wall Street following its latest financial results. While the company reported positive sales momentum, its stock price experienced a decline after the earnings announcement on October 30, 2023. The stock fell by 2.4% during the trading session, despite exceeding analyst expectations.
Based in Pennsylvania, Hershey operates under three segments: North America Confectionery, North America Salty Snacks, and International. With a market capitalization of $33.6 billion, the company has struggled over the past year. Hershey stock has seen a slight increase of 31 basis points in 2025, but it has declined by 5.7% over the past 52 weeks. In contrast, the S&P 500 Index has gained 15.6% year-to-date and 17.5% over the past year.
Despite its struggles relative to the broader market, Hershey has outperformed the Consumer Staples Select Sector SPDR Fund, which has seen a dip of 3.4% in 2025 and a 6.1% decline over the past year. The company reported a 6.5% year-over-year increase in its topline, reaching $3.2 billion, which surpassed expectations by 1.8%. Its organic constant currency sales also increased by 6.2% compared to the same quarter last year.
However, the adjusted earnings per share (EPS) for the third quarter decreased by 44.4% year-over-year to $1.30, even though it exceeded consensus estimates by 19.3%. The market reacted negatively to the company’s cautious full-year earnings guidance. Analysts anticipate an adjusted EPS of $5.98 for the full fiscal year ending December 2025, reflecting a decline of 36.2% year-over-year.
Analyst Ratings and Market Outlook
Hershey’s stock has a consensus rating of “Hold” among the 22 analysts covering it, with three “Strong Buy,” 17 “Hold,” and two “Strong Sell” ratings. This is a notable improvement from two months ago, when only one analyst issued a “Strong Buy” recommendation, and four analysts rated the stock as a “Strong Sell.”
On November 1, 2023, Robert Moskow, an analyst at TD Cowen, maintained his “Hold” rating on Hershey but lowered the price target from $204 to $200. The mean price target for HSY currently stands at $188.57, indicating an 11% premium to its current price levels. The highest target on Wall Street is $220, suggesting a potential upside of 29.5%.
The mixed sentiment surrounding Hershey reflects broader market trends and the company’s performance challenges. As analysts and investors continue to assess the confectioner’s position, the future of HSY stock remains uncertain, despite its solid reputation and earnings surprise history.