J. M. Smucker (NYSE:SJM) Posts Earnings Results, Beats Estimates By $1.02 EPS

J. M. Smucker (NYSE:SJM) posted its quarterly earnings results on Wednesday. The company reported $3.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.22 by $1.02, FiscalAI reports. J. M. Smucker had a negative net margin of 1.53% and a positive return on equity of 17.18%. The firm had revenue of $2.22 billion during the quarter, compared to analyst estimates of $2.13 billion. J. M. Smucker updated its FY 2027 guidance to 10.500-11.000 EPS.

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

• Raised fiscal 2027 outlook: The company increased its net sales guidance to a 1%-2% decline, adjusted EPS guidance to $10.50-$11.00, and free cash flow guidance to approximately $1.1 billion.
• Key growth platforms continued to gain momentum, led by Uncrustables sales growth of 12% and Café Bustelo growth of 23%; Meow Mix also delivered growth, while Milk-Bone returned to volume growth.
• Profitability and financial flexibility improved significantly, with adjusted EPS up 71%, adjusted gross margin up 240 basis points excluding tariff refunds, and leverage reaching 2.9 times net debt to EBITDA ahead of schedule after $230 million of debt repayment.
• Sweet baked snacks remained a weak spot, with sales down 7% and segment profit down 13%, while dog snacks also declined and Jif peanut butter and fruit spreads experienced lower sales.
• The outlook remains exposed to volatile green coffee costs and elevated expenses, including anticipated mid-single-digit inflation across the broader cost basket, higher marketing and administrative spending, and a projected 3%-4% sales decline in the second quarter.

J. M. Smucker Stock Down 0.6%

NYSE:SJM opened at $125.08 on Wednesday. J. M. Smucker has a 12-month low of $88.25 and a 12-month high of $127.64. The company has a quick ratio of 0.33, a current ratio of 0.78 and a debt-to-equity ratio of 1.15. The firm has a market capitalization of $13.34 billion, a P/E ratio of -96.22, a P/E/G ratio of 1.70 and a beta of 0.25. The stock’s fifty day simple moving average is $116.50 and its 200-day simple moving average is $107.66.

J. M. Smucker Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Friday, August 14th will be paid a $1.12 dividend. This is an increase from J. M. Smucker’s previous quarterly dividend of $1.10. The ex-dividend date of this dividend is Friday, August 14th. This represents a $4.48 dividend on an annualized basis and a dividend yield of 3.6%. J. M. Smucker’s dividend payout ratio (DPR) is currently -344.62%.

Trending Headlines about J. M. Smucker

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

• Positive Sentiment: SJM reported quarterly EPS of $3.24, well above the $2.22 analyst consensus, while revenue reached $2.22 billion versus expectations of $2.13 billion. The earnings beat provides evidence of stronger-than-expected operating performance. Fiscal 2027 First Quarter Results and Outlook
• Positive Sentiment: The company raised or reaffirmed fiscal 2027 guidance at $10.50-$11.00 EPS, above the $10.03 consensus estimate. Revenue guidance of $8.9 billion-$9.0 billion also exceeded the $8.8 billion analyst forecast, supporting the stock’s positive reaction.
• Positive Sentiment: Analysts had maintained generally favorable Buy and Hold ratings, with several price targets increased ahead of the earnings release. SJM also carries a consensus rating of “Moderate Buy,” which may reinforce investor confidence. Wall Street Forecasters Revise Smucker Expectations
• Neutral Sentiment: Unusually high options activity preceded the report, including a 241% increase in purchased put-option volume. This signals elevated hedging or speculation around earnings, but does not by itself establish the direction of the stock.
• Negative Sentiment: Despite the earnings beat, SJM reported a negative net margin of 1.53%, and its current and quick ratios remain relatively low at 0.78 and 0.33, respectively. These figures highlight profitability and liquidity risks that could limit further gains if execution weakens.

Insider Transactions at J. M. Smucker

In related news, CFO Tucker H. Marshall sold 3,630 shares of the firm’s stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $111.05, for a total transaction of $403,111.50. Following the sale, the chief financial officer directly owned 38,699 shares in the company, valued at $4,297,523.95. This trade represents a 8.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Jeannette L. Knudsen sold 4,353 shares of J. M. Smucker stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $115.08, for a total value of $500,943.24. Following the completion of the sale, the insider directly owned 16,835 shares in the company, valued at $1,937,371.80. This represents a 20.54% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 18,533 shares of company stock valued at $2,132,914 over the last quarter. Corporate insiders own 2.80% of the company’s stock.

Hedge Funds Weigh In On J. M. Smucker

Hedge funds have recently made changes to their positions in the business. Two Sigma Investments LP lifted its position in shares of J. M. Smucker by 6,854.4% in the third 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 grew its stake in shares of J. M. Smucker by 33.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,392,300 shares of the company’s stock valued at $331,807,000 after buying an additional 850,943 shares in the last quarter. AQR Capital Management LLC increased its holdings in J. M. Smucker by 339.1% during the third quarter. AQR Capital Management LLC now owns 1,029,222 shares of the company’s stock worth $111,156,000 after buying an additional 794,851 shares during the last quarter. NewEdge Advisors LLC raised its position 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 acquiring an additional 528,425 shares in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC acquired a new stake in J. M. Smucker in the third quarter valued at $55,736,000. 81.66% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on SJM shares. Bank of America raised their price target on J. M. Smucker from $130.00 to $132.00 and gave the company a “buy” rating in a report on Wednesday, June 10th. Wells Fargo & Company set a $115.00 target price on shares of J. M. Smucker in a research note on Wednesday, June 10th. Royal Bank Of Canada reissued an “outperform” rating on shares of J. M. Smucker in a research note on Tuesday. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $107.00 price target on shares of J. M. Smucker in a report on Friday, August 14th. Finally, Sanford C. Bernstein restated an “outperform” rating and issued a $137.00 price objective on shares of J. M. Smucker in a research report on Wednesday, June 10th. Ten research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $125.53.

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.