-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
HSY reported Q1 results ahead of expectations. Adjusted EPS rose 12.4% to $2.35 from $2.09, demonstrating solid operational performance. Segment results were mixed. North America Confectionery delivered strong segment income growth of 13.8% to $792M and Salty Snacks sales surged 26% to $350M, while the International segment faced margin pressures. We believe HSY's reaffirmed 2026 outlook, which projects 4%-5% net sales growth, 2.5%-3.5% organic growth, and 30%-35% EPS growth despite ongoing cost inflation, supports the investment thesis and indicates management's confidence in navigating these pressures. However, the adjusted gross margin declined 80 bps to 40.4%, as commodity and tariff headwinds outpaced pricing gains and operational efficiencies. We expect HSY will continue facing near-term margin pressure from cocoa costs and tariffs, though supply chain productivity should provide some offset.