The Hershey Company ( HSY ) shares are trading higher in the premarket session on Thursday.

The company reported fourth-quarter adjusted earnings per share of $2.69, beating the street view of $2.37. Quarterly sales of $2.89 billion (up 8.7% year over year) outpaced the analyst consensus estimate of $2.84 billion.

Organic, constant currency net sales grew by 9.0%. Factors like inventory timing benefits and higher net price realization drove this growth.

Hershey’s North America Confectionery segment net sales were $2.354.2 billion, up 6% year over year. North America Salty Snacks segment net sales were $278.9 million in the fourth quarter of 2024, an increase of 35.9%.  Hershey’s International segment increased 9.8% year over year to $254.5 million.

Also Read: US Stocks Likely To Open Higher Ahead Of Amazon’s Earnings: ‘Buy The Dip’ Mentality Remains Prevalent, Says Analyst

Adjusted gross margin increased 60 basis points to 44.8% in the fourth quarter of 2024. Net price realization, higher sales volume, supply chain productivity, and a timing benefit related to the inventory valuation method more than offset higher commodity costs and negative sales mix.

Adjusted operating profit of $696.8 million increased 28.0% in the quarter under review, resulting in adjusted operating profit margin of 24.1%, an increase of 360 basis points.

“While we continue to expect the surge in cocoa prices to put significant pressure on 2025 earnings, we will focus on driving top-line and share momentum, executing our transformation and productivity programs, and positioning ourselves to deliver peer-leading performance over the long-term,” said Michele Buck, The Hershey Company ( HSY ) President and Chief Executive Officer.

Dividend: The company announced quarterly dividends of $1.370 on the Common Stock and $1.245 on the Class B Common Stock. The dividends are payable March 14, 2025, to stockholders of record as of February 17, 2025.

Outlook: Hershey expects its FY25 adjusted EPS to range from $6.00 to $6.18, below the $7.37 estimate. The company expects net sales growth of at least 2%, driven primarily by net price realization, corresponding to sales of $11.426 billion, slightly above the $11.40 billion estimate.

Price Action: HSY shares are trading higher by 6.57% to $155.50 premarket at last check Thursday.

Read Next:

Meta AI Models’ Clearly Behind’ DeepSeek, Says Analyst After Mark Zuckerberg Admits DeepSeek Did Some Novel Things ‘We’re Still Digesting’