The American chocolatier records a $460 million pretax gain on commodity derivatives as cocoa futures hit record highs last year.

The chocolate maker easily beats quarterly estimates but issues disappointing guidance because of higher cocoa prices.

The Oreo maker warned of “unprecedented” inflation for the commodity that would reduce its earnings, while the Kisses giant cautioned of a disconnect between fundamentals and market price.

Hershey now forecasts 2025 adjusted earnings per share to be between $6.00 and $6.18, well below analysts' expectations of $7.34 per share, according to estimates compiled by LSEG. Company CEO Michele Buck said she expects the surge in cocoa prices to put "significant pressure on 2025 earnings."

Hershey's Q4 earnings beat expectations, driven by strong sales growth, but rising cocoa prices pose challenges for its 2025 earnings outlook.

The surge in cocoa prices, coupled with higher transportation costs, led to a 650-basis-point decline in the company's adjusted gross profit margin to 31.5%. Mondelez reported net revenue of $9.60 billion for the three months ended Dec. 31, compared with the estimates of $9.64 billion.

Hershey (HSY -1.90%) is struggling today. One of the biggest problems is inflation, but not the kind that consumers dealt with coming out of the coronavirus pandemic. Cocoa prices

Key Takeaways Hershey beat profit and sales estimates as the chocolate maker's price hikes helped to offset the higher cost of cocoa.The company also cut selling, marketing, and administrative expenses.