J. M. Smucker (NYSE:SJM) Shares Gap Up Following Strong Earnings

The J. M. Smucker Company (NYSE:SJM) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $106.60, but opened at $117.69. J. M. Smucker shares last traded at $113.60, with a volume of 1,324,568 shares.

The company reported $2.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.27 by $0.11. J. M. Smucker had a positive return on equity of 15.26% and a negative net margin of 13.61%.The firm had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.32 billion. During the same period last year, the company earned $2.61 EPS. J. M. Smucker’s quarterly revenue was up 7.0% compared to the same quarter last year.

J. M. Smucker Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, March 2nd. Stockholders of record on Friday, February 13th will be paid a dividend of $1.10 per share. This represents a $4.40 dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date of this dividend is Friday, February 13th. J. M. Smucker’s payout ratio is currently -39.22%.

More J. M. Smucker News

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

• Positive Sentiment: Q3 earnings beat: Smucker reported $2.38 EPS vs. $2.27 expected and revenue of $2.34B (up 7% y/y), which relieved near-term earnings concerns and supported the stock. Listen to Conference Call
• Positive Sentiment: Sales benefited from higher coffee prices — pricing helped top-line growth in the quarter, improving revenue mix despite volume pressure in some categories. Article
• Positive Sentiment: Governance deal with Elliott: Smucker agreed to add two independent directors (Bruce Chung and David Singer), a development investors view as constructive for board oversight and potential shareholder value actions. Press Release
• Positive Sentiment: Street support: Recent analyst moves (Bank of America upgrade; JPMorgan slight price-target lift) add buying interest ahead of/after results. JPMorgan Coverage
• Neutral Sentiment: Company disclosures and materials: Full Q3 press release, slide deck and conference call are available for investors to review details on segment performance and margin drivers. Slide Deck
• Negative Sentiment: Weaker sales guidance tied to factory fire: Management trimmed its sales-growth outlook for the year after a recent manufacturing facility fire, creating a clear near-term operational headwind. WSJ Article
• Negative Sentiment: Margin/efficiency concerns persist: despite the beat, Smucker still reported a negative net margin for the quarter, and the company faces execution risk as it manages recovery from the fire and cost pressures. Investing.com

Analyst Ratings Changes

A number of equities research analysts recently weighed in on SJM shares. JPMorgan Chase & Co. lifted their price objective on shares of J. M. Smucker from $121.00 to $122.00 and gave the company an “overweight” rating in a report on Monday. Bank of America raised shares of J. M. Smucker from a “neutral” rating to a “buy” rating and set a $130.00 price target for the company in a research note on Monday. TD Cowen increased their price objective on J. M. Smucker from $105.00 to $112.00 and gave the stock a “hold” rating in a research note on Friday, February 20th. Morgan Stanley reaffirmed an “equal weight” rating and set a $105.00 target price (down from $115.00) on shares of J. M. Smucker in a research report on Friday, January 16th. Finally, Canaccord Genuity Group upgraded J. M. Smucker to a “buy” rating in a report on Friday, January 16th. Eight investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $116.36.

Institutional Investors Weigh In On J. M. Smucker

A number of hedge funds have recently made changes to their positions in the stock. Garton & Associates Financial Advisors LLC purchased a new position in J. M. Smucker in the fourth quarter valued at about $25,000. AlphaQuest LLC acquired a new position in shares of J. M. Smucker during the second quarter worth $26,000. Root Financial Partners LLC acquired a new position in shares of J. M. Smucker during the third quarter worth $29,000. Bank of Jackson Hole Trust lifted its holdings in shares of J. M. Smucker by 104.5% during the 2nd quarter. Bank of Jackson Hole Trust now owns 274 shares of the company’s stock valued at $27,000 after purchasing an additional 140 shares during the last quarter. Finally, CYBER HORNET ETFs LLC acquired a new stake in shares of J. M. Smucker in the 2nd quarter worth $27,000. 81.66% of the stock is currently owned by hedge funds and other institutional investors.

J. M. Smucker Trading Up 8.5%

The company has a 50 day moving average of $103.44 and a two-hundred day moving average of $105.32. The stock has a market capitalization of $12.34 billion, a PE ratio of -10.30, a P/E/G ratio of 6.68 and a beta of 0.23. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.37 and a current ratio of 0.89.

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.