Hershey's Q4 Earnings Release on Deck: What to Expect From HSY?

Core Viewpoint - The Hershey Company (HSY) is expected to report growth in both revenue and earnings for the fourth quarter of 2024, with revenue estimates at $2.85 billion, reflecting a 7.3$2.38, indicating a 17.8% increase from the previous year [2]. - The North America Confectionery segment is projected to see a 5.8% sales increase for the fourth quarter [5]. Innovation and Market Strategy - Hershey's brand strength is bolstered by continuous innovation, with products like Reese's Caramel and Reese's Lava leading in their categories [3]. - The company is evolving its marketing organization to better align with consumer needs and is integrating its supply chain to enhance efficiency [4]. Operational Challenges - Hershey faces challenges from high cocoa prices and changing consumer behavior, with a shift towards value-seeking impacting foot traffic in traditional retail channels [6]. - Despite these challenges, improvements in price realization and supply-chain productivity are expected to provide some relief, although a contraction in adjusted gross margin of 160 basis points is anticipated [7]. Earnings Prediction Model - Current models do not predict a definitive earnings beat for Hershey, as it holds a Zacks Rank of 5 (Strong Sell) and an Earnings ESP of -1.52% [8].