The Hershey Company: Q3 Earnings Further Validates Our Bullish Assessment


  • Substantial increase in sales, driven by pricing and volumes, along with a dramatic increase in account receivables.
  • Skyrocketing COGS and SM&A expenses, primarily driven by inflationary pressures. We believe these increases are likely to be temporary.
  • Upwards adjusted full year guidance with both sales growth and adjusted EPS growth expected to be in the mid-teens.
  • We maintain our “buy” rating.

The Hershey Company (NYSE:HSY), together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally.

The firm has recently published strong Q3 results and the aim of our article today is to discuss these results and highlight what we like and what we don’t like about them.

Our previous thesis

In July, we have already published an article on Seeking Alpha, titled: “3 Reasons Why Hershey Stock Is A Buy“. Back then, our three reasons for buying the stock were: