Don't Sweat Hershey's Earnings: Investors Should Focus on This Instead

Shares of Hershey (NYSE: HSY) have fallen roughly 40% from their peak in 2023. The big problem for the confection maker is a steep rise in the price of cocoa, a key ingredient in its chocolates. Management is warning that 2025 earnings will be terrible, but that may not be the right indicator to watch right now.Hershey is best known for its chocolates, but it is really a snack maker. Its snacks are predominantly of the sweet variety, including things like gummies and hard candy, but in recent years the company has been expanding into salty snacks. On the salty snack side, Hershey makes pretzels (Dots), popcorn (SkinnyPop), and extruded snacks (Pirate's Booty). In fact, it recently inked a deal to add LesserEvil, which makes "better-for-you snacks," to the salty snack mix.Image source: Getty Images.Continue reading

Apr 13, 2025 - 20:14

Don't Sweat Hershey's Earnings: Investors Should Focus on This Instead

Shares of Hershey (NYSE: HSY) have fallen roughly 40% from their peak in 2023. The big problem for the confection maker is a steep rise in the price of cocoa, a key ingredient in its chocolates. Management is warning that 2025 earnings will be terrible, but that may not be the right indicator to watch right now.

Hershey is best known for its chocolates, but it is really a snack maker. Its snacks are predominantly of the sweet variety, including things like gummies and hard candy, but in recent years the company has been expanding into salty snacks. On the salty snack side, Hershey makes pretzels (Dots), popcorn (SkinnyPop), and extruded snacks (Pirate's Booty). In fact, it recently inked a deal to add LesserEvil, which makes "better-for-you snacks," to the salty snack mix.

Image source: Getty Images.