Dj Jm Smucker Company, Inst Holders, 3Q 2024 (Sjm)

Wall Street analysts expect Smucker (SJM) to post quarterly earnings of $2.50 per share in its upcoming report, which indicates a year-over-year decline of 3.5%. Revenues are expected to be $2.27 billion, up 16.9% from the year-ago quarter.

The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

That said, let's delve into the average estimates of some Smucker metrics that Wall Street analysts commonly model and monitor.

Analysts' assessment points toward 'Net Sales- U.S. Retail Frozen Handheld and Spreads' reaching $487.38 million. The estimate points to a change of +5% from the year-ago quarter.

The consensus among analysts is that 'Net Sales- U.S. Retail Coffee' will reach $694.99 million. The estimate indicates a year-over-year change of +1.4%.

The combined assessment of analysts suggests that 'Net Sales- U.S. Retail Pet Foods' will likely reach $431.19 million. The estimate indicates a year-over-year change of -7.1%.

Analysts forecast 'Net Sales- International and Away From Home' to reach $317.89 million. The estimate indicates a change of -2.1% from the prior-year quarter.

It is projected by analysts that the 'Segment Profit- U.S. Retail Coffee' will reach $174.77 million. The estimate compares to the year-ago value of $171 million.

Based on the collective assessment of analysts, 'Segment Profit- U.S. Retail Frozen Handheld and Spreads' should arrive at $114.24 million. The estimate is in contrast to the year-ago figure of $128.50 million.

The collective assessment of analysts points to an estimated 'Segment Profit- International and Away From Home' of $64.74 million. The estimate compares to the year-ago value of $60.20 million.

According to the collective judgment of analysts, 'Segment Profit- U.S. Retail Pet Foods' should come in at $110.88 million. The estimate is in contrast to the year-ago figure of $97.20 million.

View all Key Company Metrics for Smucker here>>>

Over the past month, Smucker shares have recorded returns of -4.8% versus the Zacks S&P 500 composite's +1% change. Based on its Zacks Rank #3 (Hold), SJM will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here

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The J. M. Smucker Company SJM is likely to register top-line growth when it reports second-quarter fiscal 2025 earnings on Nov. 26. The Zacks Consensus Estimate for revenues is pegged at $2.27 billion, implying a 16.9% increase from the prior-year quarter’s reported figure. The consensus mark for earnings has risen by a penny in the past 30 days to $2.50 per share, though it indicates a 3.5% decline from the figure reported in the year-ago quarter. SJM has a trailing four-quarter earnings surprise of 10.2%, on average.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Factors Likely to Fuel SJM’s Upcoming Results

The J. M. Smucker is likely to have gained from its strategic focus, progress in delivering core business objectives, successful integration of Hostess Brands, and commitment to transformation, cost discipline and cash generation. The company’s commitment to increasing its focus and resources to reshape its portfolio to achieve sustainable growth across pet food and pet snacks, coffee and snacking categories has been working well.

The J.M. Smucker has been focused on reshaping its portfolio through prudent acquisitions and divestitures. The company divested the Canadian condiments business in January 2024 and Sahale Snacks in November 2023. On the flip side, it acquired the premier snacking company, Hostess Brands, in November 2023. The impacts of these moves are expected in the quarter under review.

The J. M. Smucker Company Price, Consensus and EPS Surprise

The J. M. Smucker Company price-consensus-eps-surprise-chart | The J. M. Smucker Company Quote

Challenges Expected in SJM’s Q2 Release

The J. M. Smucker operates in a dynamic consumer environment, with inflation and reduced discretionary spending weighing on convenience store traffic. On its first-quarter fiscal 2025 earnings call, management lowered its guidance for fiscal 2025 due to a difficult operating landscape and elevated green coffee costs. This raises concerns for the quarter under review as well.

The revised net sales guidance reflects a dynamic consumer landscape shaped by ongoing inflationary pressures and reduced discretionary income, impacting the dog snacks and sweet baked goods categories. It also considers the anticipated effects of demand elasticity within the coffee portfolio due to further pricing actions driven by higher-than-expected green coffee costs. However, these challenges are likely to be somewhat offset by an elevated volume of Uncrustables sandwiches.

Apart from this, The J. M. Smucker has been incurring high selling, distribution and administrative (SD&A) costs. In the second quarter of fiscal 2025, management expects adjusted EPS to decline in mid-single digits due to elevated SD&A and interest expenses.

Earnings Whispers for SJM

Our proven model predicts an earnings beat for The J. M. Smucker this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.

The J. M. Smucker carries a Zacks Rank #3 and has an Earnings ESP of +0.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With the Favorable Combination

Here are some other companies worth considering, as our model shows that these also have the correct combination to beat on earnings this time.

Casey's General Stores CASY currently has an Earnings ESP of +5.22% and a Zacks Rank of 2. The Zacks Consensus Estimate for CASY’s quarterly revenues is pegged at $4.05 billion, which implies a 0.5% decline from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

However, CASY’s bottom line is anticipated to increase year over year when it reports second-quarter fiscal 2025 results. The consensus estimate for earnings is pegged at $4.28 per share, indicating 0.9% growth from the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 15.8%, on average.

Conagra Brands CAG currently has an Earnings ESP of +2.07% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for CAG’s quarterly revenues is pegged at $3.15 billion, which suggests a 1.8% dip from the figure reported in the prior-year quarter.

The company is also likely to register a bottom-line decline when it reports second-quarter fiscal 2025 results. The consensus estimate for Conagra Brands’ earnings is pegged at 68 cents per share, calling for a 4.2% drop from the year-ago quarter. CAG has a trailing four-quarter earnings surprise of 3.1%, on average.

Dollar Tree DLTR has an Earnings ESP of +2.80% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for DLTR’s quarterly revenues is pegged at $7.45 billion, which indicates 1.9% growth from the figure reported in the prior-year quarter.

The consensus estimate for Dollar Tree’s quarterly earnings has risen by 1 cent over the past 30 days to $1.07 per share. The figure calls for an increase of 10.3% from the year-ago quarter’s number. DLTR delivered an average negative earnings surprise of 10.9% in the trailing four quarters.

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