Hershey Q1 Earnings Preview: Will MrBeast's Feastables, Rising Cocoa Prices Hurt Chocolate Company's Results?
Portfolio Pulse from Chris Katje
Hershey Co. (NYSE:HSY) is set to report Q1 financial results with analysts expecting revenue of $3.11 billion and EPS of $2.76. Rising cocoa prices and competition from MrBeast's Feastables are key concerns. Hershey has a history of beating revenue estimates but faces challenges from higher commodity inflation and market share encroachment by Feastables. Hershey's stock has declined 30% over the last year.
May 02, 2024 | 6:38 pm
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Hershey faces rising cocoa prices and competition from Feastables, impacting Q1 earnings expectations with a forecasted revenue of $3.11 billion and EPS of $2.76.
The anticipated impact on Hershey's stock price in the short term is negative due to the dual pressures of rising cocoa prices and the emergence of Feastables as a strong competitor. These factors are likely to affect Hershey's profit margins and market share, as indicated by the company's cautious outlook and the market's reaction to similar challenges in the past. The decline in Hershey's stock price over the last year further underscores the market's concern about these challenges.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100