J. M. Smucker (NYSE:SJM) Shares Up 10.4% After Strong Earnings

Key Points

• J. M. Smucker shares jumped 10.4% after the company reported stronger-than-expected quarterly results, with EPS of $2.77 beating estimates and revenue of $2.27 billion slightly above forecasts.
• The company issued FY 2027 EPS guidance of $9.75 to $10.25, which came in above consensus and suggests continued profitability despite a softer outlook for growth.
• Investors remain cautious because management forecast FY 2027 revenue of $8.7 billion to $8.8 billion, below analyst expectations, raising concerns about slowing top-line sales ahead.

The J. M. Smucker Company (NYSE:SJM - Get Free Report)'s stock price was up 10.4% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $112.49 and last traded at $112.3130. Approximately 830,752 shares were traded during trading, a decline of 58% from the average daily volume of 1,963,613 shares. The stock had previously closed at $101.77.

The company reported $2.77 EPS for the quarter, topping analysts' consensus estimates of $2.65 by $0.12. The company had revenue of $2.27 billion for the quarter, compared to analysts' expectations of $2.26 billion. J. M. Smucker had a positive return on equity of 15.94% and a negative net margin of 14.07%.The firm's revenue was up 5.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.31 EPS. J. M. Smucker has set its FY 2027 guidance at 9.750-10.250 EPS.

J. M. Smucker Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Friday, May 15th were issued a $1.10 dividend. This represents a $4.40 annualized dividend and a dividend yield of 3.9%. The ex-dividend date of this dividend was Friday, May 15th. J. M. Smucker's payout ratio is -37.32%.

More J. M. Smucker News

Here are the key news stories impacting J. M. Smucker this week:

• Positive Sentiment: Smucker beat quarterly earnings expectations and slightly topped revenue estimates, signaling stronger-than-expected recent performance. Smucker (SJM) Q4 Earnings Top Estimates
• Positive Sentiment: Fiscal 2027 EPS guidance of $9.75 to $10.25 came in above consensus, suggesting management expects solid profitability even as growth moderates. The J.M. Smucker Co. Announces Fiscal Year 2026 Fourth Quarter Results and Provides Full-Year Fiscal 2027 Outlook
• Neutral Sentiment: Analysts and media coverage noted the earnings report was positive, but the market is also weighing mixed guidance that points to lower sales ahead. J.M. Smucker Stock Rises. Earnings and Guidance Go in Opposite Directions.
• Negative Sentiment: Management guided for fiscal 2027 revenue of $8.7 billion to $8.8 billion, below analyst expectations, which raises concerns about slowing top-line growth. J.M. Smucker Expects Sales to Fall This Year

Wall Street Analysts Forecast Growth

SJM has been the topic of several recent research reports. BTIG Research restated a "buy" rating on shares of J. M. Smucker in a research report on Thursday. Weiss Ratings reaffirmed a "sell (d)" rating on shares of J. M. Smucker in a research note on Monday, April 20th. Morgan Stanley lifted their target price on J. M. Smucker from $104.00 to $106.00 and gave the company an "equal weight" rating in a research report on Friday. Evercore began coverage on shares of J. M. Smucker in a research report on Friday, May 15th. They issued an "outperform" rating and a $117.00 price target for the company. Finally, Bank of America upgraded J. M. Smucker from a "neutral" rating to a "buy" rating and set a $130.00 price objective for the company in a research note on Monday, February 23rd. Eleven equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $116.71.

Hedge Funds Weigh In On J. M. Smucker

Several hedge funds and other institutional investors have recently bought and sold shares of the business. UBS Group AG increased its stake in shares of J. M. Smucker by 238.7% in the fourth quarter. UBS Group AG now owns 3,924,282 shares of the company's stock worth $383,834,000 after acquiring an additional 2,765,559 shares during the period. Two Sigma Investments LP increased its stake in shares of J. M. Smucker by 6,854.4% in the 3rd quarter. Two Sigma Investments LP now owns 1,527,962 shares of the company's stock valued at $165,937,000 after purchasing an additional 1,505,991 shares in the last quarter. National Bank of Canada FI raised its stake in shares of J. M. Smucker by 797.4% during the 3rd quarter. National Bank of Canada FI now owns 1,401,173 shares of the company's stock worth $152,167,000 after buying an additional 1,245,035 shares during the period. Capitolis Liquid Global Markets LLC acquired a new position in J. M. Smucker during the third quarter worth $112,944,000. Finally, Norges Bank acquired a new position in shares of J. M. Smucker during the 4th quarter worth about $92,960,000. Institutional investors and hedge funds own 81.66% of the company's stock.

J. M. Smucker Stock Performance

The firm has a 50-day moving average price of $98.03 and a two-hundred day moving average price of $101.68. The company has a quick ratio of 0.35, a current ratio of 0.84 and a debt-to-equity ratio of 1.31. The firm has a market cap of $12.07 billion, a PE ratio of -9.63, a P/E/G ratio of 6.99 and a beta of 0.27.

About J. M. Smucker

The J. M. Smucker Company is a diversified food and beverage manufacturer and marketer known for a portfolio of well-established consumer brands. The company's main business activities include the production and distribution of fruit spreads, peanut butter, coffee and coffee filters, as well as pet food and pet snacks. Smucker's core product lines serve both retail and foodservice customers through grocery chains, mass merchandisers, club stores, convenience outlets and e-commerce channels.

Among its leading brands are Smucker's® fruit spreads, Jif® peanut butter, Folgers® and Dunkin'® coffees, and Café Bustelo® coffee.

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