Why Hershey (HSY) is Poised to Beat Earnings Estimates Again

Hershey (HSY) is poised to continue its earnings-beat streak, having averaged a 10.38% surprise over the past two quarters, including a 7.73% beat in the last reported quarter. The company's current positive Zacks Earnings ESP of +11.13% combined with a Zacks Rank #3 (Hold) collectively suggest a high probability of another positive surprise, a combination historically leading to beats nearly 70% of the time. This positions HSY as a notable stock ahead of its July 30, 2025 earnings report.

Analysis

The Hershey Company (HSY) exhibits strong quantitative indicators suggesting a high probability of exceeding earnings estimates in its upcoming report scheduled for July 30, 2025. The company has a consistent record of positive performance, delivering an average earnings surprise of 10.38% over the last two quarters. Specifically, it reported a 7.73% beat in the most recent quarter with EPS of $2.09 versus a $1.94 consensus, and a 13.03% beat in the prior quarter with EPS of $2.69 against a $2.38 estimate. Reinforcing this historical trend, the forward-looking Zacks Earnings ESP (Expected Surprise Prediction) is currently a robust +11.13%, indicating that recent analyst revisions are increasingly bullish. This positive ESP, combined with the stock's Zacks Rank #3 (Hold), aligns with a model that has historically predicted an earnings beat nearly 70% of the time, positioning HSY for another potential upside surprise.

Key Decisions for Investors

• Investors with a bullish outlook on Hershey may consider establishing or adding to positions ahead of the July 30, 2025 earnings report to potentially capitalize on a positive surprise suggested by the strong predictive metrics.
• Traders focusing on event-driven strategies should note the combination of a positive Earnings ESP (+11.13%) and a history of beats as a strong signal, though a positive earnings report does not guarantee a favorable stock price reaction.
• It is crucial to monitor for any changes in the Zacks Rank or Earnings ESP as the reporting date nears, as the current thesis is heavily dependent on these specific quantitative indicators remaining positive.