Smucker Earned $2.26 per Share

On Friday, JM Smucker (SJM) dropped sharply after the terrible earnings report from Kraft Heinz. This morning we learned that despite the problems at KHC, Smucker is doing just fine.

For their fiscal Q3, the jelly people earned $2.26 per share, which beat Wall Street’s estimate of $2.02 per share. Sales rose 6% to just over $2 billion. The company also stood by its full-year forecast.

“We are pleased with the progress that we made in the third quarter to advance our consumer centric strategy for growth, including increasing contributions from new platforms such as 1850™ coffee and Jif® Power-Ups™ snacks,” said Mark Smucker, Chief Executive Officer. “Our results reflect strong sales across all of our key growth brands, including double-digit increases for Rachael Ray® Nutrish®, Smucker’s® Uncrustables®, Nature’s Recipe®, and Sahale Snacks®. We are also pleased with our cost management efforts, as we continue to deliver on our synergy and cost savings targets. Across all our businesses, we are executing on our strategic plan focused on meeting consumer and retail trends and delivering sustainable long-term growth.”

For the full year, which is just one more quarter, Smucker expects sales of $7.9 billion and earnings of $8.00 to $8.20 per share. They’ve already made $6.20 per share for the first three quarters, so that translates to a Q4 range of $1.80 to $2.00 per share.

Let’s look at SJM’s different divisions. Coffee sales were $561 million. That’s the most profitable division. Retail consumer foods had sales of $422 million. Retail pet food was $759 million. The international division had sales of $228 million.

The stock has been up as much as 8% this morning.

Update: Smucker closed up 5% today.

Posted by on February 26th, 2019 at 11:39 am


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