Hershey Stock Pops Despite Rising Cocoa Costs Expected to Bite Into 2024 Earnings
On Thursday, shares of Hershey (NYSE: HSY) gained 4.1%, following the confectionary and snack-food giant's release of its fourth-quarter 2023 report.
The company behind such brand favorites as its namesake brand, Reese's, and Twizzlers posted quarterly results that Wall Street characterizes as "mixed." Revenue slightly missed the analyst consensus estimate, while earnings exceeded it. But there was nothing even semisweet about management's full-year 2024 guidance: Both the top and bottom lines were below the Street's expectations, with the profit outlook particularly disappointing, due in large part to sharply rising cocoa costs.
So why did the stock pop 4.1% on Thursday? That gain is likely attributable to several factors, including that management raised its dividend by a robust 15% and is implementing a multiyear plan to increase operating efficiency. A key part of this plan involves exploring the use of additional automation.
Source Fool.com
Hershey Co. Stock
With 10 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
With a target price of 230 € there is a positive potential of 26.14% for Hershey Co. compared to the current price of 182.34 €.
