Hershey (HSY) shares are soaring 5.25% in pre-market trading on Wednesday following the release of its second-quarter financial results that exceeded analysts' expectations. The confectionery giant reported adjusted earnings of $1.21 per share, surpassing the consensus estimate of $0.99, while net sales climbed 26% to $2.61 billion, beating the projected $2.52 billion.

The company's strong performance was primarily driven by robust Easter season demand for its confectionery goods and salty snacks. Hershey's CEO, Michele Buck, highlighted the positive momentum in the business, noting that investments in brands and innovation are fueling strong sales and market share gains in both the U.S. confection and salty snacking segments.

Despite the upbeat results, Hershey faces challenges from increased tariff expenses, which are now expected to be between $170 million and $180 million for the full year, significantly higher than the previously projected $15 million to $20 million for the reported quarter. In response to these headwinds and rising cocoa prices, the company has implemented strategic pricing measures, raising prices by about 5% in the quarter ended June 29.

Looking ahead, Hershey maintained its annual sales growth forecast of at least 2% but adjusted its earnings outlook. The company now projects fiscal 2025 adjusted earnings per share to be between $5.81 and $6.00, down from the previous range of $6.00 to $6.18. This adjustment reflects the ongoing impact of tariffs and commodity cost pressures. However, investors appear to be focusing on the company's ability to navigate these challenges through pricing strategies and productivity enhancements.