Overview
Food producer's fiscal Q3 revenue rose 7%, slightly beating analyst expectations
Adjusted EPS for fiscal Q3 beat analyst expectations
Net loss per share reflects impairment charges for Sweet Baked Snacks unit
Outlook
Company expects full-year net sales to increase 3.5% to 4.0%
J.M. Smucker maintains full-year adjusted EPS guidance of $8.75 to $9.25
Company sees full-year free cash flow at $975 mln
Result Drivers
NET PRICE REALIZATION - Higher net pricing for coffee drove a 10 percentage point increase in comparable net sales
CASH FLOW INCREASE - Cash flow rose significantly due to reduced working capital needs and lower tax payments
IMPAIRMENT CHARGES - Noncash impairment charges for Sweet Baked Snacks unit affected adjusted EPS
Company press release: ID:nPn3YTKJqa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Beat* | $2.34 bln | $2.32 bln (14 Analysts) |
Q3 Adjusted EPS | Beat | $2.38 | $2.27 (15 Analysts) |
Q3 EPS | -$6.79 | ||
Q3 Net Income | -$724.20 mln | ||
Q3 Adjusted Operating Income | Beat | $431.60 mln | $411.24 mln (11 Analysts) |
Q3 Operating Income | -$548.40 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for J M Smucker Co is $112.50, about 5.5% above its February 25 closing price of $106.60
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)