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

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Key Takeaways

  • Hershey's transformation and ERP initiatives are driving operational and marketing gains.
  • Pricing actions and the AAA program are likely to have supported top-line growth in the third quarter.
  • High cocoa prices and increased brand investments are expected to have pressured profitability.

The Hershey Company (HSY - Free Report) is likely to register an increase in the top line when it reports third-quarter 2025 earnings on Oct. 30. The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $3.12 billion, which indicates 4.3% growth from the year-ago quarter.

The consensus mark for earnings has risen from $1.06 to $1.08 in the past 30 days. However, the consensus estimate indicates a decrease of 53.9% from the year-ago quarter’s reported figure. HSY delivered a trailing four-quarter earnings surprise of 8.5%, on average.

Hershey Company (The) Price, Consensus and EPS Surprise

Hershey Company (The) Price, Consensus and EPS Surprise

Hershey Company (The) price-consensus-eps-surprise-chart | Hershey Company (The) Quote

Factors to Consider Ahead of HSY’s Upcoming Results

Hershey’s transformation initiatives and integrated operating model are likely to have supported another quarter of solid sales growth. The company’s efforts to streamline its supply chain, leverage its new ERP platform and strengthen its marketing organization are yielding tangible benefits. 

Recent pricing actions, particularly the broad-based increase across its U.S. confection portfolio, are expected to support top-line expansion while the Advancing Agility & Automation (“AAA”) program continues to unlock cost efficiencies. Strong brand equity and innovation have been sustaining volume momentum across retail channels. These factors are likely to have contributed to HSY’s top line in the third quarter.

That said, Hershey’s profitability is poised to remain under pressure as record-high cocoa prices, tariffs and heightened brand investments weigh on margins. The company’s adjusted gross margin contracted sharply in the second quarter, and further deterioration is expected through the back half of the year. These aspects raise concerns for the quarter under review. Our model suggests a 60-bps contraction in the adjusted gross margin to 35.3% for the third quarter.

Earnings Whispers for HSY Stock

Our proven model predicts an earnings beat for Hershey this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. 

Hershey has a Zacks Rank #3 and an Earnings ESP of +0.19%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Other Stocks With the Favorable Combination

Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.

Vital Farms (VITL - Free Report) currently has an Earnings ESP of +8.84% and a Zacks Rank of 1. The company is expected to register growth in both top and bottom lines when it reports third-quarter 2025 results. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for revenues is pegged at $191.1 million, which indicates an increase of 31.8% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for Vital Farms’ quarterly earnings per share of 29 cents implies a surge of 81.3% from 16 cents reported in the year-ago quarter. VITL delivered a trailing four-quarter earnings surprise of 35.8%, on average.

Corteva (CTVA - Free Report) currently has an Earnings ESP of +4.82% and a Zacks Rank of 3. The company is likely to register a jump in the top line when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $2.49 billion, which indicates an increase of almost 7% from the prior-year quarter. 

The Zacks Consensus Estimate for the bottom line is pegged at a loss of 49 cents, which is in line with the year-ago period. CTVA delivered a positive earnings surprise in the past two consecutive quarters.

Monster Beverage (MNST - Free Report) currently has an Earnings ESP of +0.82% and a Zacks Rank of 3. The company is expected to register growth in both top and bottom lines when it reports third-quarter 2025 results. The consensus mark for revenues is pegged at $2.10 billion, which calls for a jump of 11.9% from the figure reported in the year-ago quarter. 

The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings per share of 48 cents implies an increase of 20% from 40 cents reported in the year-ago quarter. MNST delivered a trailing four-quarter earnings surprise of 0.2%, on average.

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