J. M. Smucker (NYSE:SJM) Issues Earnings Results, Beats Estimates By $0.13 EPS

J. M. Smucker (NYSE:SJM) issued its quarterly earnings results on Tuesday. The company reported $2.77 EPS for the quarter, topping analysts’ consensus estimates of $2.64 by $0.13, FiscalAI reports. The company had revenue of $2.27 billion during 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 quarter in the previous year, the firm posted $2.31 EPS. J. M. Smucker updated its FY 2027 guidance to 9.750-10.250 EPS.

Here are the key takeaways from J. M. Smucker’s conference call:

• The company said fiscal 2026 results exceeded the midpoint of original guidance, with 5% comparable net sales growth, $1.2 billion in free cash flow, and a 20% increase in adjusted EPS in the fourth quarter.
• Uncrustables continued to be a standout growth driver, posting 8% quarterly sales growth and reaching $1 billion in annual sales, while management highlighted new product innovation and a long runway for household penetration growth.
• Café Bustelo and Meow Mix remain key growth platforms, with Café Bustelo up 39% in fiscal 2026 and Meow Mix gaining share in dry cat food as the company plans added marketing, distribution, and innovation support.
• The company expects fiscal 2027 net sales to decline 3%-4% because of green coffee deflation and lower price realization, but it still projects adjusted EPS of $9.75-$10.25 and about $1 billion of free cash flow.
• Management emphasized improving profitability, including an expected return of U.S. retail coffee margins to the high 20s and Sweet Baked Snacks margins to the low-to-mid teens, helped by lower green coffee costs, productivity actions, and continued debt reduction.

J. M. Smucker Stock Up 10.0%

Shares of SJM opened at $111.94 on Wednesday. The company has a market capitalization of $11.94 billion, a price-to-earnings ratio of -9.49, a PEG ratio of 6.89 and a beta of 0.27. J. M. Smucker has a 52 week low of $88.25 and a 52 week high of $119.39. The stock’s 50-day moving average price is $98.37 and its 200-day moving average price is $101.73. The company has a quick ratio of 0.35, a current ratio of 0.84 and a debt-to-equity ratio of 1.31.

J. M. Smucker Announces Dividend

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

Analyst Upgrades and Downgrades

SJM has been the subject of a number of research reports. Sanford C. Bernstein decreased their target price on J. M. Smucker from $145.00 to $134.00 and set an “outperform” rating for the company in a report on Monday, May 4th. Barclays dropped their target price on J. M. Smucker from $125.00 to $103.00 and set an “equal weight” rating on the stock in a research report on Tuesday, April 14th. Weiss Ratings reissued a “sell (d)” rating on shares of J. M. Smucker in a research report on Monday, April 20th. Evercore assumed coverage on shares of J. M. Smucker in a research note on Friday, May 15th. They set an “outperform” rating and a $117.00 price objective for the company. Finally, Stifel Nicolaus dropped their price objective on shares of J. M. Smucker from $120.00 to $100.00 and set a “hold” rating on the stock in a report on Tuesday, April 21st. Eleven analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, J. M. Smucker has an average rating of “Hold” and an average target price of $116.71.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of SJM. Two Sigma Investments LP boosted its position in 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 worth $165,937,000 after purchasing an additional 1,505,991 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of J. M. Smucker by 33.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,392,300 shares of the company’s stock valued at $331,807,000 after purchasing an additional 850,943 shares during the period. AQR Capital Management LLC lifted its stake in shares of J. M. Smucker by 339.1% in the 3rd quarter. AQR Capital Management LLC now owns 1,029,222 shares of the company’s stock valued at $111,156,000 after purchasing an additional 794,851 shares during the period. NewEdge Advisors LLC boosted its holdings in J. M. Smucker by 10,549.5% during the fourth quarter. NewEdge Advisors LLC now owns 533,434 shares of the company’s stock worth $52,175,000 after buying an additional 528,425 shares in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC purchased a new stake in J. M. Smucker during the third quarter worth $55,736,000. 81.66% of the stock is owned by institutional investors and hedge funds.

J. M. Smucker News Roundup

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

• Positive Sentiment: Fiscal Q4 earnings of $2.77 per share beat estimates, and revenue of $2.27 billion also came in slightly above forecasts, reinforcing confidence in the turnaround. The J.M. Smucker Co. Announces Fiscal Year 2026 Fourth Quarter Results and Provides Full-Year Fiscal 2027 Outlook
• Positive Sentiment: Higher pricing and cost discipline helped expand profits, while the coffee segment was a key driver of the quarter’s outperformance. JM Smucker beats quarterly estimates as coffee segment drives growth
• Neutral Sentiment: Management issued upbeat EPS guidance for fiscal 2027, but revenue guidance was weaker than expected, creating a mixed read-through for investors. J.M. Smucker Expects Sales to Fall This Year
• Negative Sentiment: The company signaled sales may decline next year as volume trends remain soft in coffee and baked goods, which could limit upside if pricing momentum fades. J.M. Smucker Stock Rises. Earnings and Guidance Go in Opposite Directions.

J. M. Smucker Company Profile

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.