Packaged foods company J.M Smucker (NYSE:SJM) will be announcing earnings results tomorrow before market open. Here’s what to look for.
J. M. Smucker missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $2.19 billion, down 1.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ gross margin estimates but a miss of analysts’ organic revenue estimates.
Is J. M. Smucker a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting J. M. Smucker’s revenue to be flat year on year at $2.19 billion, in line with the 1.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.25 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. J. M. Smucker has missed Wall Street’s revenue estimates six times over the last two years.
Looking at J. M. Smucker’s peers in the shelf-stable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. SunOpta delivered year-on-year revenue growth of 9.3%, beating analysts’ expectations by 3.7%, and TreeHouse Foods reported a revenue decline of 3.6%, in line with consensus estimates. SunOpta traded up 28.3% following the results while TreeHouse Foods was down 8.3%.
Read our full analysis of SunOpta’s results here and TreeHouse Foods’s results here.
Investors in the shelf-stable food segment have had steady hands going into earnings, with share prices flat over the last month. J. M. Smucker’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $121.36 (compared to the current share price of $111.50).
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