HSY to Report Q3 Earnings: Should You Expect a Beat This Time?

Core Insights - The Hershey Company (HSY) is expected to report a revenue increase of 4.3% year-over-year, with third-quarter 2025 revenues estimated at $3.12 billion [1] - The consensus estimate for earnings has risen to $1.08, although this reflects a significant decrease of 53.9% compared to the previous year's figure [2] - Hershey's transformation initiatives and integrated operating model are anticipated to support solid sales growth, aided by supply chain improvements and enhanced marketing efforts [3] Revenue Growth Factors - Recent pricing actions, particularly across the U.S. confection portfolio, are expected to contribute to top-line expansion, alongside the Advancing Agility & Automation (AAA) program which is unlocking cost efficiencies [4] - Strong brand equity and innovation are sustaining volume momentum across retail channels, likely benefiting HSY's revenue in the third quarter [4] Profitability Concerns - Hershey's profitability is under pressure due to record-high cocoa prices, tariffs, and increased brand investments, which are expected to negatively impact margins [5] - The adjusted gross margin is projected to contract by 60 basis points to 35.3% for the third quarter [5] Earnings Predictions - The model predicts an earnings beat for Hershey, supported by a positive Earnings ESP of +0.19% and a Zacks Rank of 3 (Hold) [6] - Other companies with favorable earnings combinations include Vital Farms and Corteva, which are also expected to report growth in both top and bottom lines [7][9]