The Hershey Company (NYSE:HSY) shares are continuing their six-month-long decline today despite delivering better-than-expected third-quarter numbers. During the quarter, the confectionery maker’s revenue surged 11% year-over-year to $3.03 billion, exceeding estimates by $80 million. EPS of $2.60 also fared better than the consensus by $0.14.
Pricing gains during the quarter helped revenue in the North America Confectionery segment rise by nearly 10%. Further, a combination of pricing uptick and favorable volume/mix drove a 25.5% increase in the North America Salty Snacks segment. The company’s Salty Snacks segment is showing promising green shoots of growth even as Hershey continues to invest in branding and partners with retailers to drive its top line.
Impressively, price realization and productivity gains led to the company’s operating margin expanding by 390 basis points to 24.3%. Looking ahead to Fiscal Year 2023, Hershey expects net sales to increase by 8%, with EPS for the year anticipated to rise by 11% to 12%.
What Is the Forecast for HSY Stock?
Overall, the Street has a Moderate Buy consensus rating on Hershey. After a nearly 28% slide in its share price over the past six months, the average HSY price target of $241.22 implies a 27.2% potential upside.
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