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.

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.

Cadbury-parent Mondelez International forecast a bigger-than-estimated drop in its annual profit on Tuesday, signaling pressures from higher costs, including from surging cocoa prices, sending its shares down nearly 6% after the bell.

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.