"Strong Execution Drives Upside Hershey reported adjusted earnings per share of $1.30, beating consensus estimates of $1.06 by $0.24, or 22.6%. Revenue came in at $3.18 billion, topping the $3.12 billion estimate by $66 million. Both metrics signal that the company's innovation efforts and brand investments are resonating with consumers across its portfolio. The beat came despite a challenging operating environment."
"Margin Pressure Remains the Real Story The headline beat masks a more complicated picture underneath. Gross profit declined 15.8% year over year to $1.04 billion, and gross margin contracted by 870 basis points. Operating income fell 29.1% to $434.6 million. Net income dropped 38.1% to $276.3 million. This deterioration reflects what management flagged as headwinds: higher commodity costs and tariff pressures."
Hershey reported adjusted EPS of $1.30 versus consensus of $1.06 and revenue of $3.18 billion versus $3.12 billion, prompting management to raise full-year guidance. All three segments contributed: North America Confectionery grew 5.6% to $2.62 billion, North America Salty Snacks rose 10% to $321 million, and International revenue increased 12.1% to $244.8 million. Gross profit declined 15.8% to $1.04 billion, gross margin contracted by 870 basis points, operating income fell 29.1% to $434.6 million, and net income dropped 38.1% to $276.3 million. Persistent headwinds include higher commodity costs and tariffs.
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