Hershey (HSY) is expected to report Q2 revenue below expectations due to soft North American confection consumption trends, RBC Capital Markets said in a note Tuesday.
Scanner data for the June quarter indicate a 0.6% decline in consumption at the total company level, driven by a 2.9% decrease in confection, suggesting the company will likely miss consensus estimates this quarter, analysts wrote. The company is scheduled to report its Q2 financial results on Thursday.
The investment firm said management will likely reiterate 2026 guidance, although the lower end of the range is "more appropriate" for now.
Management has said it is confident in its 2027 setup and highlighted that it has no plans for price investment, believing that prices are in the right place, but will use price-pack architecture to ensure affordable entry points, according to the note.
RBC Capital Markets reiterated its sector perform rating on the stock and price target of $212.
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