Hershey (NYSE:HSY) Declares Dividends As Earnings Show US$225 Million Net Income Drop
The Hershey Company (NYSE:HSY) recently reaffirmed its dividend payouts and released a lower year-over-year earnings report for Q1 2025, amidst expectations of modest sales growth and a significant EPS decline for the full year. Over the last quarter, the company's stock price experienced a 10% increase. This movement parallels the upward trend in broader markets, influenced by strong technology earnings that propelled indices like the S&P 500 and the Dow. Hershey's consistent dividend distributions perhaps provided some stability, yet did not significantly counter or enhance the larger market movements observed during this period.
We've identified 2 warning signs with Hershey (at least 1 which is significant) and understanding the impact should be part of your investment process.
Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
The Hershey Company's Q1 2025 earnings report, with lower year-over-year results, contrasts with its reaffirmed dividend, impacting investor sentiment. While the company's stock rose 10% in the last quarter, mirroring market trends, Hershey's shares have experienced a 41.96% total return, including dividends, over the past five years. This longer-term performance provides a broader context, indicating that despite recent pressures, the company has been resilient over time.
In the past year, Hershey underperformed compared to the US Food industry, which experienced a negative return of 7.9%. The current earnings and revenue forecasts may be challenged by elevated cocoa costs and changing consumer trends toward healthier products. Analysts expect earnings to decrease from US$2.2 billion today to US$1.7 billion by April 2028, with projected revenue growth of 2.4% annually over the next three years. With these forecasts in mind, the recent stock price movement of Hershey, currently valued at US$165.07, aligns closely with the analyst consensus price target of US$165.86, suggesting the stock might be fairly priced at present. However, the potential weak international segment growth and consumer trends could alter these projections.
Navigate through the intricacies of Hershey with our comprehensive balance sheet health report here.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NYSE:HSY.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
Mesoblast (ASX:MSB) Gains 15% In One Week With US FDA Orphan-Drug Approval
Mesoblast experienced a 15% increase in its share price over the past week, largely driven by a significant orphan-drug approval by the U.S. FDA for Ryoncil. This approval, granting seven years of exclusivity for a vital treatment, likely bolstered investor confidence given the strengthened competitive positioning of Mesoblast. While broader market trends saw the S&P 500 and Nasdaq reach new highs amid positive investor sentiment on U.S.-China trade discussions, Mesoblast's specific gains were more tied to its unique developments, as they provided a substantial boost, counterbalancing broader market movements. You should learn about the 1 warning sign we've spotted with Mesoblast. Explore 22 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. Over the past three years, Mesoblast's total shareholder return, including share price changes and dividends, reached 181.00%. Despite recent gains driven by the U.S. FDA's orphan-drug approval for Ryoncil, the company's one-year performance outpaced the broader Australian Biotechs industry, which returned 12.3% less in the same timeframe. This highlights significant investor confidence and a positive reception to recent strategic advancements. While Mesoblast's share price has experienced impressive growth, it still trades at approximately 88% below consensus analyst price targets. The approval of Ryoncil positions the company competitively, potentially boosting future revenue, as evidenced by the expanded insurance coverage to 104 million U.S. lives. However, Mesoblast remains unprofitable, with A$47.93 million in net losses reported in its recent earnings. Analysts forecast substantial revenue growth at 56.7% annually, but profit forecasts show continued challenges for the next three years. The stock's recent appreciation reflects increased optimism, although the gap between the current share price and targeted fair value suggests room for further market adjustments. Our comprehensive valuation report raises the possibility that Mesoblast is priced lower than what may be justified by its financials. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:MSB. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
32 minutes ago
- Yahoo
Trump's Steel Tariffs 'Hits Straight On Ford's Core:' Analyst Sees Higher Input Costs And Eroding Pricing Power For Tesla Rival
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Donald Trump's tariffs on steel and aluminum are likely to have a deep impact on the input costs of the U.S. automaker Ford Motor Co. (NYSE:F), explains Alex Tsepaev, the chief strategy officer at B2PRIME Group. What Happened: Unlike globalized automakers like Stellantis NV (NYSE:STLA), Ford remains deeply tied to U.S.-centric manufacturing, Tsepaev told Benzinga, suggesting that 'A 50% tariff could inflate COGS significantly just as pricing power erodes in both EV and ICE segments.' The cost of goods sold, or COGS, refers to the input costs paid by the firm to manufacture its final products. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Thus, according to Tsepaev, 'Trump's call to double steel tariffs hits straight on Ford's core. Steel makes up more than half of the weight of a vehicle, and Ford can't do anything with this reality. In 2018, similar tariffs were estimated to cost Ford over $1 billion annually. When your business runs on metal and tariffs make the metal more expensive, Wall Street notices it.' Earlier in May, Ford suspended its financial guidance during the first quarter results, which included full-year adjusted EBIT and adjusted free cash flow, due to tariff-related uncertainty. According to Tsepaev, this was due to a 65% decline in profits, with revenues falling to $40 billion. He forecasts that increased input volatility for Ford could lead to downward revisions. 'In today's environment, policy uncertainty is the new supply chain risk. For investors, Ford looks exposed, rigid, and margin-constrained in all the wrong places,' Tsepaev It Matters: Trump doubled U.S. tariffs on imported steel from 25% to 50% on May 31, which took effect on June 4. Trump said he initially considered a 40% tariff but raised it after feedback from industry leaders. 'At 25% they can sorta get over that fence,' he said, adding, 'At 50% nobody's getting over that fence.' In 2018, Trump-era tariffs prompted a minor rise in U.S. steel production. However, a 2023 report by the International Trade Commission found that these same tariffs increased costs for downstream industries, leading to a more than $3 billion reduction in output for vehicle, machinery, and tool sectors by 2021, suggesting a net negative economic impact. Shares of Ford ended 1.58% higher on Friday, and they have risen by 6.32% on a year-to-date basis, but it was down 17.12% over the last year. In premarket on Monday, the stock was up 0.05%. Read Next: In terms of getting money back, these bank accounts put traditional checking and savings accounts to shame. Maximize saving for your retirement and cut down taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Image via Shutterstock This article Trump's Steel Tariffs 'Hits Straight On Ford's Core:' Analyst Sees Higher Input Costs And Eroding Pricing Power For Tesla Rival originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
35 minutes ago
- Yahoo
Palantir-Backed Voyager Rockets Above $31 IPO Price
Voyager Technologies kicks off trading on the NYSE after pricing its IPO at $31above its marketed $26$29 rangeraising $382.8 million at a $1.9 billion market cap in what Wall Street sees as a litmus test for space-sector stocks. Backed by Palantir Technologies (NASDAQ:PLTR) and Lockheed Martin (NYSE:LMT), Voyager's debut follows Circle's blockbuster listing and precedes Chime's IPO, spotlighting investor appetite for high-growth tech niches. Founded in Colorado, Voyager specializes in defense and commercial space technologies, with NASA as its largest customer under a $217.5 million contract to design the Starlab space station set to succeed the ISS around 2030. In 2024, Voyager posted $144.2 million in sales26% of which came from NASAand saw revenue grow 6% last year and 14% in Q1 2025, though it reported a $65.6 million net loss as it scales operations. Management expanded the share sale to 12.35 million shares to meet demand, tapping a broad investor base eager for exposure to orbital infrastructure ahead of U.S. defense initiatives like the proposed Golden Dome missile-defense shield. Investors should care because Voyager's trading performance will gauge market enthusiasm for space plays amid a wave of tech IPOs, and its strong NASA ties provide a steady revenue pillar even as profitability remains a longer-term goal. Investors will watch VOYG's first-day trading action and future earnings reports for signs that government contracts and rising commercial space investments can drive sustained growth and narrow net losses. This article first appeared on GuruFocus.
