Core Viewpoint - The Hershey Company is launching a new lineup of holiday treats for the 2025 season, including innovative flavors and festive designs to enhance holiday celebrations [1][2][3]. Product Launches - New products include: - Hershey's Kisses Snickerdoodle Cookie Candy, featuring white creme with crunchy cookie pieces [3]. - KIT KAT® Peppermint Stick, which consists of crisp wafers coated in peppermint-flavored creme [3]. - Reese's Mini Trees, bite-sized treats combining milk chocolate and peanut butter [3]. - Hershey's Grinch Milk Chocolate Bar, wrapped in designs featuring characters from Dr. Seuss's "How the Grinch Stole Christmas" [3]. Seasonal Favorites - Classic Hershey's Kisses holiday treats will return, including flavors like Milk Candy Cane, Kisses with Almond, and Hot Cocoa [2][3]. - The lineup also features seasonal shapes such as Reese's Mini Trees and returning KIT KAT® Santas, which are popular among consumers [4]. Gift Options - Hershey offers candy assortments that cater to various tastes, making them ideal for stocking stuffers and entertaining guests during the holiday season [5][8]. - Assortments include: - Reese's Trees & KIT KAT® Santas Snack Size Assortment - Holiday Mint Assortment with assorted mint-flavored candies - Sweets Assortment featuring Jolly Rancher and Twizzlers products [8]. Company Overview - The Hershey Company is a leading snacks company with over 20,000 employees and more than 90 brand names, generating over $11.2 billion in annual revenues [7]. - The company has a long-standing commitment to ethical and sustainable operations, focusing on community support and education initiatives [8].

Core Insights - The Hershey Company has a market capitalization of $33.6 billion and operates in various segments including North America Confectionery, North America Salty Snacks, and International [1] Performance Overview - Hershey's stock has underperformed the broader market, with a decline of 5.7% over the past 52 weeks, while the S&P 500 Index gained 17.5% during the same period [2] - In 2025, Hershey's stock saw a slight increase of 31 basis points, outperforming the Consumer Staples Select Sector SPDR Fund, which declined by 6.1% [3] Financial Results - In Q3, Hershey reported a 6.5% year-over-year increase in total revenue to $3.2 billion, exceeding expectations by 1.8% [4] - Organic constant currency sales rose by 6.2% compared to the previous year, although adjusted EPS fell by 44.4% year-over-year to $1.30, surpassing consensus estimates by 19.3% [4][5] Earnings Guidance - For the full fiscal year 2025, analysts project an adjusted EPS of $5.98, reflecting a 36.2% decline year-over-year [5] - Despite the positive earnings surprise history, the company did not significantly improve its full-year earnings guidance, which negatively impacted market perception [5] Analyst Ratings - The consensus rating among 22 analysts covering Hershey stock is a "Hold," with three "Strong Buys," 17 "Holds," and two "Strong Sells" [6] - This rating is more optimistic compared to two months ago, when there was only one "Strong Buy" and four "Strong Sell" ratings [7] - TD Cowen analyst Robert Moskow reiterated a "Hold" rating and lowered the price target from $204 to $200 [8]

Group 1 - The Hershey Company has faced significant struggles over the past two and a half years, largely attributed to the impact of GLP-1 weight loss drugs on the packaged food industry [1] - Despite the challenges, there is a belief that the worst may be behind Hershey, suggesting potential for recovery [1] - The company is recognized for its iconic brands, including Hershey's, Reese's, Kit Kat, and SkinnyPop, and offers a variety of products such as chocolates, gums, mints, and baking ingredients [2] Group 2 - While Hershey is acknowledged as a potential investment, there are opinions that certain AI stocks may present greater upside potential and lower downside risk [3]

Financial Performance - Hershey's stock experienced a significant drop, declining from $196 to $169 within three weeks [2] - Hershey's Q3 net sales reached $318 billion, a 65% year-over-year increase, surpassing Wall Street's expectation of $312 billion [7] - Organic sales grew by 62%, primarily driven by price increases, exceeding analysts' expectations of 36% [8] - Adjusted gross margin decreased by 85 basis points year-over-year to 318%, attributed to higher commodity and tariff costs [8] - Q3 earnings per share were $130, down 44% year-over-year, but above Wall Street's anticipated $107 [9] Market Dynamics and Challenges - Hershey has faced challenges in the past two and a half years, partly due to the impact of GOP-1 weight loss drugs on the packaged food industry [3] - The company has also struggled with high cocoa prices, although the situation has improved in the last 10 months [4] - Halloween season sales started slower than expected due to warmer weather and concentrated seasonal purchases [11][12] Strategic Initiatives and Outlook - Hershey appointed Kirk Tanner as the new CEO in mid-August, who previously worked at Wendy's and PepsiCo [5] - Management raised the lower end of their full-year earnings guidance by 9 cents, projecting $590 to $6 per share [10] - The company emphasizes a long-term strategy, focusing on future performance rather than short-term gains [13] - Piper Sandler upgraded Hershey's stock from underweight to neutral, citing reduced uncertainty and potential moderation in cocoa prices [16]

Core Viewpoint - Hershey's stock has experienced a significant decline, dropping from a high of $196 to around $169, with further declines following disappointing earnings reports and cautious management outlooks [2][4][10]. Financial Performance - Hershey reported net sales of $3.18 billion, a 6.5% year-over-year increase, surpassing Wall Street's expectation of $3.12 billion [7]. - Organic sales growth was 6.2%, primarily driven by price increases, exceeding the analyst expectation of 3.6% [8]. - Adjusted gross margin fell to 31.8%, down 85 basis points year-over-year, attributed to higher commodity and tariff costs [8][9]. - Earnings per share were $1.30, down 44% year-over-year but better than the anticipated $1.07 [9]. Management and Strategic Changes - A new CEO, Kirk Tanner, took over in mid-August, bringing experience from Wendy's and PepsiCo [5]. - Management raised the full-year earnings forecast slightly, increasing the low end by 9 cents, which was viewed as disappointing given the earnings beat [10][11]. - The management's cautious tone during the earnings call indicated challenges in the Halloween season and a slower-than-expected start [11][12]. Market Reaction and Analyst Sentiment - The stock has been volatile, with significant sell-offs following earnings reports, reflecting investor concerns about the company's future [14]. - Analysts have begun to upgrade the stock, citing reduced uncertainty and potential moderation in cocoa prices as 2026 approaches [16]. - Despite the current challenges, there is a belief that the stock may be close to a bottom, with potential for future growth under new leadership [19].

Company Overview - Hershey's stock has experienced a significant decline, dropping from a high of 196 to around 169 in recent weeks, indicating a troubling trend for shareholders [2][3] - The company has been struggling for the past two and a half years, primarily due to the impact of weight loss drugs on consumer behavior and high cocoa prices [3][4] Recent Developments - A new CEO, Kirk Tanner, was appointed in mid-August, bringing experience from Wendy's and PepsiCo, which was seen as a positive change for the company [5] - Despite the leadership change, Hershey's recent earnings report was complex, leading to a cut in the full-year earnings forecast due to tariffs and cocoa price volatility management costs [6] Market Reaction - Following the earnings report, the stock initially spiked but quickly fell back, reflecting ongoing volatility and investor uncertainty [6][7] - The stock's performance has been described as choppy and has worsened in recent weeks, contributing to a negative sentiment around the company [7]

Stock Performance & Market Concerns - Hershey's stock plunged from a high of $196 to $169 within three weeks, causing concern for shareholders [1][2] - The stock tumbled from $175 to $171 yesterday, then further to $169 today, indicating a continued downward trend [2] - The packaged food industry is struggling due to the popularity of GOP D-1 weight loss drugs [3] - Sky-high cocoa prices have been a challenge, although they have improved over the last 10 months [4] Company Strategy & Leadership - Hershey hired Kirk Tanner as the new CEO in mid-August, previously from Wendy's and with three decades at PepsiCo [5] - Management cut their full-year earnings forecast due to tariffs and the cost of the hedging program for cocoa price volatility [6] - The stock initially spiked on the news of a complicated quarter and rumors of a takeover from Manderly, but then declined [6][7]

Core Insights - Hershey's recent third-quarter earnings report exceeded expectations in both earnings and sales, attributed to increased sales offsetting profit pressure from rising costs [2][5] - David Palmer from Evercore ISI set a price target of $215 for Hershey, suggesting a potential increase of about 28.06% from its current trading price of $167.89 [1][5] - Despite a recent price drop, Hershey's raised outlook for 2025 and strong market capitalization of approximately $34.06 billion indicate potential for future growth [4][5] Company Performance - Currently, HSY is priced at $167.99, reflecting a decrease of 1.85% or $3.17, with fluctuations showing a daily low of $166.41 and a high of $171.71 [3] - Over the past year, HSY has reached a high of $208.03 and a low of $140.13, indicating significant volatility in its price [3] Market Position - Hershey's market capitalization is approximately $34.06 billion, indicating its substantial size in the market [4] - The trading volume for HSY is 1,401,647 shares, reflecting active investor interest [4]

Core Insights - Hershey's candy sales are facing challenges despite the holiday season being traditionally profitable, with a noted slow start in Halloween sales attributed to the timing of the holiday [3][4] - The company is shifting focus to enhance consumer insights and digital marketing efforts, aiming to refine product offerings and pricing strategies year-round [4] - Hershey's strongest growth is now coming from its salty and savory snacks segment, indicating a shift in consumer preferences [6][7] Company Strategy - Hershey plans to invest in consumer insights to improve product mix, pricing, and packaging beyond just holiday seasons [4] - The company is enhancing digital marketing initiatives to drive growth and support creative collaborations, such as the Reese's Oreo partnership [4] Market Performance - Hershey reported a 5.6% year-over-year sales growth in its North America Confectionery segment for Q3 2025 [5] - The global candy market is valued at approximately $73.4 billion in 2025, with an expected annual growth rate of 4.6% through 2030, reaching $97.6 billion [7]

Core Viewpoint - The article compiles significant research calls from Wall Street, highlighting upgrades for various companies based on their recent performance and outlook. Group 1: Company Upgrades - Jefferies upgraded Apple (AAPL) to Hold from Underperform with a price target of $246.99, up from $203.07, after September quarter revenue grew about 8% and gross margin came in at 47.2%, or about 0.5% better than expected including a $1.1B tariff [2] - Goldman Sachs upgraded Roblox (RBLX) to Buy from Neutral with a price target of $180, up from $155, following the Q3 earnings report, citing strength in bookings, revenue, and daily active user growth, with management optimistic about long-term scaling [2] - BTIG upgraded Unity (U) to Neutral from Sell and removed the prior $27 price target, noting healthy spending trends based on recent surveys of gaming and non-advertising professionals [2] - Piper Sandler upgraded Hershey (HSY) to Neutral from Underweight with an unchanged price target of $167, highlighting the company's plans to be "on-algorithm" in 2026 for better visibility [2] - Stifel upgraded Idexx Laboratories (IDXX) to Buy from Hold with a price target of $700, up from $640, expecting accelerated recurring revenue growth in the Companion Animal Group [2]