Latest news with #J.M.SmuckerCompany
Yahoo
25-06-2025
- Business
- Yahoo
The J. M. Smucker Company (SJM) I Told Them Not To Buy Twinkies!, Says Jim Cramer
The J. M. Smucker Company (NYSE:SJM) is one of the . The J. M. Smucker Company (NYSE:SJM) is a major American food products company. As has been the case with other food companies, such as Pepsi, investors are worried about the firm suffering in the aftermath of the GLP-1 wave in America. The J. M. Smucker Company (NYSE:SJM)'s shares have lost 12.9% year-to-date primarily due to a disastrous 15.6% dip in June. The shares fell after the firm's latest earnings report disappointed investors on the guidance front. The J. M. Smucker Company (NYSE:SJM) guided $9 in midpoint full-year earnings while analysts had penciled in $10.26. In his remarks, Cramer discussed an overlooked factor behind the earnings disaster: '[After Faber pointed out the shares were down 6% and the firm had missed guidance] Yeah I didn't really uh, that was quite opaque . . it's not clear what it is. I'll tell you what is clear. 980 million dollar impairment charge for Hostess Twinkies bought for 5.6 billion at the beginning of what is called GLP-1. I told them not to do it!' The J. M. Smucker Company (NYSE:SJM)'s management warned about tariffs in its latest earnings call. Here is what they said: 'As a domestic food producer, we are relatively less exposed to tariffs compared to other industries. That said, the current U.S. tariff impact on green coffee is our largest exposure that we will manage on top of navigating record-high costs for the commodity. Green coffee is an unavailable natural resource that cannot be grown in the continental U.S. due to its reliance on a tropical climate. We currently purchase approximately 500 million pounds of green coffee annually, with the majority coming from Brazil and Vietnam, the 2 largest coffee producing countries. Outside of coffee, the vast majority of our U.S. production is sourced domestically. However, there is some sourcing of finished goods and ingredients that are subject to tariffs as things stand today. A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. This has been factored into our outlook, and we are working to mitigate these cost increases through a combination of alternative sourcing strategies, supply chain optimization, and responsible pricing.' While we acknowledge the potential of SJM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
18-06-2025
- Business
- Yahoo
Stifel Cuts J. M. Smucker's (SJM) PT, Maintains Hold
The J. M. Smucker Company (NYSE:SJM) is one of the 10 stocks that Jim Cramer and analysts are watching. On June 11, Stifel analyst Matthew Smith cut the price target on the stock from $120 to $106 and maintained a Hold rating. The firm noted that while the company posted a stronger-than-expected fourth quarter, its FY26 outlook suggests an 11% drop in EPS, which came in about 13% below the firm's forecast. The analyst lowered the FY26 EPS estimate by $ 1.43 to $8.95, mainly due to weaker performance in Coffee and Sweet Baked Goods. On the same day, several other firms, including Stifel, Barclays, and BofA, revised their price targets downward on J. M. Smucker (NYSE:SJM) stock. A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. On June 10, Cramer discussed The J. M. Smucker Company (NYSE:SJM) and said: 'But let's look at the other way. Let's talk about what old folks were interested in. There's a company called J.M. Smucker. It makes coffee jams and pet food, Uncrustables, Twinkies. It's covered by 15 different firms… It's real. We've all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age and we went nuts for the weight loss shots, J.M. Smucker didn't seem to notice. They ran into the fire, they bought Hostess, that's right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that'll be the last one, as Twinkies and Ho Hos may not turn very well. Let's just say they're going nowhere. They also took a big hit from tariffs and higher coffee costs. Smucker's talking about a 20% boost in coffee prices. That's not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business, all major firms.' The J. M. Smucker Company (NYSE:SJM) produces and sells a wide range of branded food and beverage products, including coffee, snacks, spreads, pet food, baked goods, and frozen items. While we acknowledge the potential of SJM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Business
- Yahoo
The J. M. Smucker Company (SJM): The Disaster Was 'Jarring,' Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where The J. M. Smucker Company (NYSE:SJM) stands against other stocks that Jim Cramer discusses. The J. M. Smucker Company (NYSE:SJM) is one of America's largest food products companies known for its well-known brands such as Folgers and Dunkin. The stock has bled 14% year-to-date primarily on the back of an unbelievable 15.6% share price drop in June. The J. M. Smucker Company (NYSE:SJM)'s shares tanked after the firm's midpoint annual earnings per share guidance of $9 missed average analyst estimates of $10.23 by a wide margin. During the call, the firm's management warned that its green coffee supply could be impacted by tariffs and added that it expects to continuously face demand and inflationary pressures. The J. M. Smucker Company (NYSE:SJM)'s quarterly revenue of $2.14 billion also missed analyst estimates of $2.19 billion. Cramer was shaken by the results: 'But the Smucker disaster yesterday was jarring. Including the gigantic charge they took on Hostess Twinkies. Mark Smucker should not have bought that.' A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. Ahead of the earnings, Cramer warned that The J. M. Smucker Company (NYSE:SJM) was going 'nowhere': 'But let's look at the other way. Let's talk about what old folks were interested in. There's a company called J.M. Smucker. It makes coffee jams and pet food, Uncrustables, Twinkies. It's covered by 15 different firms… It's real. We've all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age and we went nuts for the weight loss shots, J.M. Smucker didn't seem to notice. They ran into the fire, they bought Hostess, that's right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that'll be the last one, as Twinkies and Ho Hos may not turn very well. Let's just say they're going nowhere. They also took a big hit from tariffs and higher coffee costs. Smucker's talking about a 20% boost in coffee prices. That's not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business, all major firms.' While we acknowledge the potential of SJM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
16-06-2025
- Business
- Yahoo
The J. M. Smucker Company (SJM): The Disaster Was 'Jarring,' Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where The J. M. Smucker Company (NYSE:SJM) stands against other stocks that Jim Cramer discusses. The J. M. Smucker Company (NYSE:SJM) is one of America's largest food products companies known for its well-known brands such as Folgers and Dunkin. The stock has bled 14% year-to-date primarily on the back of an unbelievable 15.6% share price drop in June. The J. M. Smucker Company (NYSE:SJM)'s shares tanked after the firm's midpoint annual earnings per share guidance of $9 missed average analyst estimates of $10.23 by a wide margin. During the call, the firm's management warned that its green coffee supply could be impacted by tariffs and added that it expects to continuously face demand and inflationary pressures. The J. M. Smucker Company (NYSE:SJM)'s quarterly revenue of $2.14 billion also missed analyst estimates of $2.19 billion. Cramer was shaken by the results: 'But the Smucker disaster yesterday was jarring. Including the gigantic charge they took on Hostess Twinkies. Mark Smucker should not have bought that.' A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. Ahead of the earnings, Cramer warned that The J. M. Smucker Company (NYSE:SJM) was going 'nowhere': 'But let's look at the other way. Let's talk about what old folks were interested in. There's a company called J.M. Smucker. It makes coffee jams and pet food, Uncrustables, Twinkies. It's covered by 15 different firms… It's real. We've all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age and we went nuts for the weight loss shots, J.M. Smucker didn't seem to notice. They ran into the fire, they bought Hostess, that's right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that'll be the last one, as Twinkies and Ho Hos may not turn very well. Let's just say they're going nowhere. They also took a big hit from tariffs and higher coffee costs. Smucker's talking about a 20% boost in coffee prices. That's not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business, all major firms.' While we acknowledge the potential of SJM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
10-06-2025
- Business
- Yahoo
J.M Smucker earnings: Stock will be in 'penalty box' for a while
The J.M. Smucker Company (SJM) — which owns consumer brands like Jif peanut butter, Uncrustables, Hostess, Folgers coffee, and Milk-Bone dog treats — is seeing shares drop Tuesday morning after disappointing investors on its fiscal full-year 2026 guidance. The snack brand reported mixed fiscal fourth quarter 2025 results, topping earnings estimates and falling the slightest bit short of revenue forecasts. TD Cowen managing director Robert Moskow comes on Catalysts to talk about his takeaways from the earnings release and earnings call. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. J.M. Smucker sinking after issuing disappointing guidance for fiscal year 2026, the maker of Folders coffee and Jif peanut butter reporting mixed results for the fourth quarter, with net sales declining 3% from a year earlier. Joining me now, Robert Moscow. He is TD Cowen's managing director. Moscow, so sorry about that. Thank you so much for joining us. Talk to me about how you are viewing these results. The stock right now having its biggest drop since 2006. Why is there such a negative reaction? Um, well, the the big uh, uh negative news here was coffee. Um, we and I think the street expected the company to guide coffee to flat profits for for fiscal 26. Uh, they have to raise prices a lot to offset higher uh, input green coffee costs and and even some tariffs. But in the past, they've done a very good job of of uh, keeping profits somewhat stable as they raise price and and managing elasticity. But this guidance is for over a hundred million dollars of a profit gap on coffee. Uh, so downs substantially in fiscal 26. And that's tough for investors to swallow. It certainly is, but it's also tough for them to swallow the price increases that we've seen with regards to coffee, especially given that we haven't even fully seen the impact of tariff policy yet. I I'm curious if you can talk a little bit about what Smuckers could have done, if anything, to prevent some profit squeezes off the back of that. Um, well, I I, you know, the coffee input costs are out of their control, but what they're going to do is raise prices in May and then they're going to raise prices again in August, and the cumulative impact is going to be about 20% to the consumer. Uh, they're expecting a 10% volume decline from these actions. Uh, that's a historical relationship for elasticity. Uh, my question on the call was, why so glum? Uh, one month into the fiscal year, volume's actually up in our retail tracking data, and uh, there must be something that they see uh, coming through in the next several months that will hurt that data and and and they must be able to they must see something that there's there's a mismatch that we can't tell in our data. Did you get a sense of what that is? Um, some of it's timing, you know, the the the costs come in first and then the pricing comes in after. They say by the end of the year, uh they that their pricing actions will offset the the cost. So maybe that sets up for a fiscal 27, uh which they say will return to normal uh for them in terms of their growth algorithm. It makes me wonder too. One of the notes I saw from analysts this morning indicated that they have a history, this company, of being a little too cautious when it comes to guidance, and you also said the same. Why so glum? Do you think there's any chance that this is just sort of their approach to moments of volatility, to be more cautious in their signaling to Wall Street and then later surprise to the upside, or do you think it's something more sinister this time? Yeah, I I think it's possible. Um, I wrote it in my report that uh my first impressions that, you know, they do have a tendency to be very conservative in their guidance. And in fact, if you look at fiscal 25, the year they just finished, a lot of companies missed numbers, they they did not miss numbers. Um, but I I think the stock's going to be in the penalty box for a while here until uh there's more until there's more proof that this price cost relationship with coffee is working to their advantage or at least not as bad as it looks. Um, and then they also have to get past the lingering um overhang on the stock from the hostess acquisition. Uh their capital allocation history has been very spotty. Uh they overpaid for hostess, they just took uh about a billion dollars of a of a charge on that, and they guided hostess even lower than what they uh what they thought the the business would do just a few months ago.
