The Hershey Company stock research
FY2024 Q3
The Hershey (HSY) Gross Margin — Quarter Ended Sep 29, 2024
Revenue was stable compared to the same quarter last year, while gross profit and gross margin both weakened. Relative to the prior quarter, revenue, gross profit, and gross margin all improved.
Gross margin takeaway
Quarter ended Sep 29, 2024 · FY2024 Q3
Revenue was stable compared to the same quarter last year, while gross profit and gross margin both weakened. Relative to the prior quarter, revenue, gross profit, and gross margin all improved.
- The gross margin improved sequentially from the prior quarter but weakened compared to the same quarter last year. The change in cost of revenue relative to revenue was the primary observable factor in the margin movement.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was stable, while gross profit and gross margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.3%
Gross profit
$1.2B
Revenue
$3.0B
Cost of revenue
$1.8B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
-3.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $2.7B | $1.1B | $1.5B | 42.3% |
| Mar 31, 2024 | $3.3B | $1.7B | $1.6B | 51.5% |
| Jun 30, 2024 | $2.1B | $833.7M | $1.2B | 40.2% |
| Sep 29, 2024 | $3.0B | $1.2B | $1.8B | 41.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.1 pts
Year-over-year change
Oct 1, 2023
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially from the prior quarter but weakened compared to the same quarter last year. The change in cost of revenue relative to revenue was the primary observable factor in the margin movement.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was stable, while gross profit and gross margin were lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.