J. M. Smucker (NYSE:SJM) Releases Quarterly Earnings Results, Misses Expectations By $0.05 EPS

Key Points

• J. M. Smucker reported an earnings per share (EPS) of $1.90, surpassing analyst estimates of $1.89, despite a year-over-year revenue decline of 0.6%.
• The company announced a quarterly dividend increase to $1.10 per share, reflecting an annualized dividend of $4.40 and a 4.0% yield.
• Various research firms have upgraded J. M. Smucker's stock ratings, with target prices ranging from $105.00 to $130.00, reflecting growing investor confidence.

J. M. Smucker (NYSE:SJM - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $1.90 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.95 by ($0.05), Zacks reports. J. M. Smucker had a negative net margin of 14.10% and a positive return on equity of 15.20%. The firm had revenue of $2.11 billion during the quarter, compared to analysts' expectations of $2.09 billion. During the same quarter in the prior year, the firm posted $2.44 EPS. J. M. Smucker's quarterly revenue was down .6% compared to the same quarter last year. J. M. Smucker updated its FY 2026 guidance to 8.500-9.500 EPS.

J. M. Smucker Stock Performance

Shares of NYSE:SJM traded down $4.99 during trading on Wednesday, hitting $105.59. 2,862,412 shares of the company traded hands, compared to its average volume of 1,608,387. The company has a quick ratio of 0.35, a current ratio of 0.81 and a debt-to-equity ratio of 1.16. The business's fifty day moving average is $106.32 and its 200-day moving average is $109.54. The stock has a market capitalization of $11.25 billion, a price-to-earnings ratio of -9.18, a PEG ratio of 8.30 and a beta of 0.31. J. M. Smucker has a one year low of $93.30 and a one year high of $125.42.

J. M. Smucker Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 2nd. Stockholders of record on Friday, August 15th will be issued a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a dividend yield of 4.2%. This is a boost from J. M. Smucker's previous quarterly dividend of $1.08. The ex-dividend date of this dividend is Friday, August 15th. J. M. Smucker's dividend payout ratio is currently -38.06%.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Citigroup dropped their price objective on J. M. Smucker from $128.00 to $118.00 and set a "buy" rating on the stock in a report on Wednesday, June 11th. Bank of America increased their price objective on J. M. Smucker from $105.00 to $120.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 19th. Jefferies Financial Group raised J. M. Smucker from a "hold" rating to a "buy" rating and reduced their price target for the company from $118.00 to $115.00 in a report on Wednesday, June 11th. Zacks Research raised J. M. Smucker to a "hold" rating in a report on Monday, August 11th. Finally, Morgan Stanley raised their price objective on J. M. Smucker from $115.00 to $118.00 and gave the company an "overweight" rating in a research note on Monday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $119.69.

Insider Activity

In other news, Director Tarang Amin bought 1,050 shares of the business's stock in a transaction on Thursday, June 12th. The stock was purchased at an average cost of $96.09 per share, for a total transaction of $100,894.50. Following the completion of the transaction, the director directly owned 3,825 shares of the company's stock, valued at approximately $367,544.25. This trade represents a 37.84% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 2.24% of the company's stock.

Hedge Funds Weigh In On J. M. Smucker

A number of hedge funds have recently modified their holdings of the stock. CYBER HORNET ETFs LLC bought a new stake in J. M. Smucker during the second quarter valued at about $27,000. MUFG Securities EMEA plc bought a new stake in shares of J. M. Smucker in the second quarter valued at about $31,000. EverSource Wealth Advisors LLC lifted its stake in shares of J. M. Smucker by 111.2% in the second quarter. EverSource Wealth Advisors LLC now owns 1,071 shares of the company's stock valued at $105,000 after buying an additional 564 shares during the period. American Century Companies Inc. lifted its stake in shares of J. M. Smucker by 6.7% in the second quarter. American Century Companies Inc. now owns 2,209 shares of the company's stock valued at $217,000 after buying an additional 138 shares during the period. Finally, Geneos Wealth Management Inc. lifted its stake in shares of J. M. Smucker by 61.2% in the second quarter. Geneos Wealth Management Inc. now owns 2,221 shares of the company's stock valued at $218,000 after buying an additional 843 shares during the period. 81.66% of the stock is owned by institutional investors and hedge funds.

J. M. Smucker Company Profile

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, toppings, and syrups; jelly products; nut mix products; shortening and oils; frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients.