Latest news with #J.M.SmuckerCompany
Yahoo
4 days ago
- 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.
Yahoo
4 days ago
- Business
- Yahoo
The J.M. Smucker Q4 Earnings Top Estimates, Sales Down 3% Y/Y
The J. M. Smucker Company SJM reported fourth-quarter fiscal 2025 results, with the top line missing the Zacks Consensus Estimate but the bottom line exceeding the same. However, both metrics declined year over year. SJM's fiscal fourth-quarter results reflect the impact of several key transactions, including the divestiture of certain Sweet Baked Snacks value brands (March 3, 2025), the divestiture of the Voortman business (Dec. 2, 2024), the divestiture of the Canada condiment business (Jan. 2, 2024), the acquisition of Hostess Brands (Nov. 7, 2023) and the divestiture of the Sahale Snacks business (Nov. 1, 2023). Adjusted earnings of $2.31 per share decreased 13% year over year. However, the bottom line surpassed the Zacks Consensus Estimate of $2.25. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) The J. M. Smucker Company price-consensus-eps-surprise-chart | The J. M. Smucker Company Quote Net sales amounted to $2,143.8 million, which fell 3% year over year and missed the Zacks Consensus Estimate of $2,191 million. Excluding noncomparable net sales of last year associated with divestitures as well as currency movements, the top line dipped 1%. The downtick in comparable net sales can be attributed to the lower volume/mix (down 3%), partly made up by net price realization (up 3%).The gross profit went down 10% due to elevated costs, unfavorable volume/mix and the noncomparable impact of divestitures, partially offset by better net price realization. The adjusted gross profit fell 9%.The adjusted operating income fell 8% year over year to $422.4 million. U.S. Retail Pet Foods: The segment's sales fell 13% to $395.5 million. The volume/mix had an 11-percentage-point adverse impact on net sales, while net price realization decreased the metric by 2 percentage points. The segment's profit decreased 7% to $106.1 million. The Zacks Consensus Estimate for segment sales was pegged at $434 million.U.S. Retail Coffee: The segment's sales grew 11% to $738.6 million, backed by higher net price realization (up 10%), while volume/mix remained neutral. The segment's profit went up $0.9 million to $211.2 million. The consensus estimate for segment sales was pegged at $715 million.U.S. Retail Frozen Handheld and Spreads: Sales in the segment decreased $0.7 million to $449.8 million, while the consensus mark was $462 million. The volume/mix boosted net sales by 1 percentage point and the net price realization decreased the metric by 1 percentage point. The segment's profit tumbled 5% to $91 Baked Snacks: Sales in the segment were $251 million, down 26% year over year. Excluding noncomparable sales related to divestitures, net sales declined 14%. Both volume/mix and net price realization had an adverse impact on net sales. The consensus estimate for segment sales was pegged at $270 million. Segment profit slumped 72% to $20 million in the and Away From Home: Net sales increased 3% to $308.9 million compared with the Zacks Consensus Estimate of $311 million. Excluding unfavorable foreign currency exchange, net sales grew 4%. The volume/mix had a 1-percentage-point negative effect and the net price realization had a positive impact of 6 percentage points on net sales. The segment's profit increased 13% to $69.2 million. The J. M. Smucker exited the quarter with cash and cash equivalents of $69.9 million, long-term debt (net of current portion) of $7,036.8 million and total shareholders' equity of $6,082.6 flow provided by operating activities amounted to $393.9 million for the three months ended April 30, 2025. Free cash flow was $298.9 million in the same time cash flow and capital expenditures are likely to be $875 million and $325 million, respectively, in fiscal 2026. Fiscal 2026 net sales are anticipated to increase in the range of 2% to 4%. This includes an impact related to the divestitures of the Voortman business and certain Sweet Baked Snacks value brands. SJM anticipates comparable net sales to increase approximately 3.5-5.5%, excluding noncomparable sales from Voortman divestitures and certain Sweet Baked Snacks brands. The growth reflects higher net price realization, partially offset by volume/mix declines. This guidance also accounts for a $38-million decline in contract manufacturing sales following the end of the pet food brand agreement in fiscal adjusted EPS for fiscal 2026 is envisioned in the band of $8.50 to $9.50. The company recorded an adjusted EPS of $10.12 in fiscal 2025. The bottom-line guidance takes into account an adjusted gross profit margin of about 35.5-36% and a roughly 3% rise in SD&A expenses. Shares of this Zacks Rank #3 (Hold) company have tumbled 1.1% over the past three months compared with the industry's decline of 3.4%. Image Source: Zacks Investment Research Nomad Foods NOMD, which manufactures frozen foods, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on average. The Zacks Consensus Estimate for Nomad Foods' current financial-year sales and earnings implies growth of 4.6% and 7.3%, respectively, from the year-ago Group AB OTLY, an oatmilk company, provides a range of plant-based dairy products made from oats. It presently has a Zacks Rank of 2 (BUY). OTLY delivered a trailing four-quarter earnings surprise of 25.1%, on consensus estimate for Oatly Group's current fiscal-year sales and earnings implies growth of 2.7% and 65.8%, respectively, from the year-ago S.A. BRFS raises, produces and slaughters poultry and pork for the processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank #2. BRFS delivered a trailing four-quarter earnings surprise of 5.4%, on Zacks Consensus Estimate for BRF S.A.'s current fiscal-year sales and earnings implies growth of 0.3% and 11.1%, respectively, from the prior-year levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The J. M. Smucker Company (SJM) : Free Stock Analysis Report BRF S.A. (BRFS) : Free Stock Analysis Report Nomad Foods Limited (NOMD) : Free Stock Analysis Report Oatly Group AB Sponsored ADR (OTLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
4 days ago
- 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.
Yahoo
11-05-2025
- Business
- Yahoo
Why It Might Not Make Sense To Buy The J. M. Smucker Company (NYSE:SJM) For Its Upcoming Dividend
The J. M. Smucker Company (NYSE:SJM) stock is about to trade ex-dividend in four days. The ex-dividend date is usually set to be one business day before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least one business day to settle. Meaning, you will need to purchase J. M. Smucker's shares before the 16th of May to receive the dividend, which will be paid on the 2nd of June. The company's next dividend payment will be US$1.08 per share, and in the last 12 months, the company paid a total of US$4.32 per share. Based on the last year's worth of payments, J. M. Smucker stock has a trailing yield of around 3.9% on the current share price of US$111.54. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether J. M. Smucker can afford its dividend, and if the dividend could grow. Our free stock report includes 3 warning signs investors should be aware of before investing in J. M. Smucker. Read for free now. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. J. M. Smucker's dividend is not well covered by earnings, as the company lost money last year. This is not a sustainable state of affairs, so it would be worth investigating if earnings are expected to recover. Given that the company reported a loss last year, we now need to see if it generated enough free cash flow to fund the dividend. If J. M. Smucker didn't generate enough cash to pay the dividend, then it must have either paid from cash in the bank or by borrowing money, neither of which is sustainable in the long term. Over the last year it paid out 56% of its free cash flow as dividends, within the usual range for most companies. View our latest analysis for J. M. Smucker Click here to see the company's payout ratio, plus analyst estimates of its future dividends. When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. J. M. Smucker was unprofitable last year and, unfortunately, the general trend suggests its earnings have been in decline over the last five years, making us wonder if the dividend is sustainable at all. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. J. M. Smucker has delivered an average of 5.4% per year annual increase in its dividend, based on the past 10 years of dividend payments. Remember, you can always get a snapshot of J. M. Smucker's financial health, by checking our visualisation of its financial health, here. Has J. M. Smucker got what it takes to maintain its dividend payments? First, it's not great to see the company paying a dividend despite being loss-making over the last year. On the plus side, the dividend was covered by free cash flow." Overall it doesn't look like the most suitable dividend stock for a long-term buy and hold investor. Although, if you're still interested in J. M. Smucker and want to know more, you'll find it very useful to know what risks this stock faces. To help with this, we've discovered 3 warning signs for J. M. Smucker (1 makes us a bit uncomfortable!) that you ought to be aware of before buying the shares. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
27-02-2025
- Business
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The J.M. Smucker Q3 Earnings Top Estimates, Sales Dip on Low Volumes
The J. M. Smucker Company SJM posted third-quarter fiscal 2025 results, wherein the bottom line increased year over year and beat the Zacks Consensus Estimate, while the top line declined and missed the consensus company's third-quarter performance reflects the effective execution of its strategy and ability to achieve favorable results despite a dynamic operating and consumer landscape. While net sales were affected by certain supply chain disruptions, stringent cost management and strong execution led to better-than-expected adjusted earnings per share. Management stated that the company's strategic focus and commitment to key development platforms have driven strong year-to-date performance, boosting growth in its top and bottom lines while enhancing shareholder value over time. Adjusted earnings of $2.61 per share advanced 5% year over year and surpassed the Zacks Consensus Estimate of $ the latest EPS estimates and surprises on Zacks Earnings Calendar. The J. M. Smucker Company price-consensus-eps-surprise-chart | The J. M. Smucker Company Quote Net sales amounted to $2,186 million, which fell 2% year over year and missed the Zacks Consensus Estimate of $2,221 million. Excluding noncomparable net sales of last year associated with divestitures, additional sales of the present year related to the Hostess Brands acquisition, as well as currency movements, net sales dipped 1%. The downtick in comparable net sales can be attributed to the lower volume/mix (down 5%), partly made up by net price realization (up 3%).The gross profit went up 7% driven by better net price realization, reduced costs and a positive impact of the Hostess Brands acquisition, partly negated by the impact of divestitures and reduced volume/mix. The adjusted gross profit fell 1%.The adjusted operating income rose 1% year over year to $463.8 million. U.S. Retail Pet Foods: The segment's sales fell 9% to $423 million. The volume/mix had a 9-percentage-point adverse impact on net sales, while net price realization remained neutral. The segment's profit jumped 7% to $116.8 million. The Zacks Consensus Estimate for segment sales was pegged at $430.1 million.U.S. Retail Coffee: The segment's sales grew 2% to $740.6 million, backed by higher net price realization (up 9%), while volume/mix declined 7%. The segment's profit went up by $0.8 million to $208.6 million. The consensus estimate for segment sales was pegged at $734.9 million.U.S. Retail Frozen Handheld and Spreads: Sales in the segment increased 2% to $445.2 million, while the consensus mark stood at $456.7 million. The volume/mix boosted net sales by 2%, and the net price realization remained neutral to sales. The segment's profit tumbled 5% to $99.2 Baked Snacks: Sales in the segment came in at $278.6 million, down 7% year over year. Excluding noncomparable sales related to acquisitions and divestitures, net sales declined 8%. Both volume/mix and net price realization had an adverse impact on net sales. The consensus estimate for segment sales was pegged at $285 million. Segment profit slumped 19% to $54.8 million in the and Away from Home: Net sales dropped by $0.8 million to $298.6 million, compared with the Zacks Consensus Estimate of $307.1 million. Excluding the impact of noncomparable net sales associated with divestitures and currency movements, net sales grew 5%. The volume/mix had a one-percentage-point negative effect, and the net price realization had a positive impact of six percentage points on net sales. The segment's profit increased 22% to $61.6 million. The J. M. Smucker exited the quarter with cash and cash equivalents of $47.2 million, long-term debt (net of current portion) of $6,385.5 million and total shareholders' equity of $6,907.3 flow provided by operating activities amounted to $239.4 million for the three months ended Jan. 31, 2025. Free cash flow was $151.3 million in the same time cash flow and capital expenditures are likely to be $925 million and $400 million now, respectively, in fiscal 2025. Free cash flow and capital expenditures were earlier guided to be $875 million and $450 million, respectively. Fiscal 2025 net sales are anticipated to increase 7.25% now, compared with the previous view of 7.5-8.5%.SJM anticipates comparable net sales to increase by nearly 0.75%. This excludes noncomparable sales in the current year related to the Hostess Brands buyout and noncomparable sales in the prior year associated with the divested Voortman, Canada condiment, and Sahale Snacks businesses. This view also includes a decrease of $100 million in contract manufacturing sales associated with the divested pet food adjusted EPS for fiscal 2025 is now envisioned in the $9.85-$10.15 band, up from the $9.70-$10.10 range expected before. The company recorded an adjusted EPS of $9.94 in fiscal 2024. The bottom-line guidance takes into account an adjusted gross profit margin of about 38% and a roughly 8% rise in SD&A expenses. The company had earlier expected the adjusted gross margin to be 37.5%-38% and SD&A expenses to grow 9%.Management's fiscal 2025 guidance does not incorporate any effects from the previously announced deal to offload certain Sweet Baked Snacks value brands. This transaction, anticipated to close in the fourth quarter of fiscal 2025, is expected to impact fiscal 2025 net sales by approximately $10 million while having no material impact on the adjusted earnings per share. The company plans to allocate the proceeds toward debt of this Zacks Rank #3 (Hold) company have tumbled 7.5% over the past three months compared with the industry's decline of 3.6%. Post Holdings POST currently carries a Zacks Rank of 2 (Buy). POST delivered a trailing four-quarter earnings surprise of 22.3%, on average. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks consensus estimate for Post Holdings' current fiscal-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the year-ago period's reported Colony LANC, which engages in the manufacturing and marketing of specialty food products, presently holds a Zacks Rank #2. LANC delivered a trailing four-quarter earnings surprise of 1.7%, on Zacks Consensus Estimate for Lancaster Colony's current fiscal year sales and earnings implies growth of 3.1% and 6.1%, respectively, from the year-ago period's reported Brands UTZ, which engages in the manufacture, marketing and distribution of snack foods, currently carries a Zacks Rank #2. UTZ delivered a trailing four-quarter earnings surprise of 8.8%, on consensus estimate for Utz Brands' full-year sales and earnings calls for growth of 2% and 9.1%, respectively, from the prior-year reported levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The J. M. Smucker Company (SJM) : Free Stock Analysis Report Post Holdings, Inc. (POST) : Free Stock Analysis Report Lancaster Colony Corporation (LANC) : Free Stock Analysis Report Utz Brands, Inc. (UTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
