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J. M. Smucker (SJM) Stock Jumps on Q2 Earnings & Sales Beat

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The J. M. Smucker Company (SJM - Free Report) , engaged in the manufacture and marketing of branded food products worldwide, delivered second-quarter fiscal 2018 adjusted earnings of $2.02 per share that dipped 1.5% year over year but surpassed the Zacks Consensus Estimate of $1.89 per share.

The company lowered the higher end of its fiscal 2018 earnings guidance owing to higher freight costs anticipated through the rest of the year due to industry headwinds. The company now expects adjusted earnings in the range of $7.75-$7.90 per share, compared with $7.75-$7.95 anticipated earlier.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2017 has been stable in the last 30 days. If we look at J. M. Smucker’s performance in the trailing four quarters (excluding the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 0.9%, with a beat in two quarters.

Revenue: J. M. Smucker generated net sales of $1,923.6 million that inched up 0.5% year over year, marking an improvement from the prior quarter. Sales also topped the Zacks Consensus Estimate of $1,895 million. Results were driven by the pet food business and strength across key brands. Further, growth in e-commerce sales, particularly in the U.S. retail segment, aided results.

The company expects net sales to be in the range of flat to down slightly in fiscal 2018.

Zacks Rank: Currently, J. M. Smucker has a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Shares increased nearly 3.6% during pre-market trading hours following the solid second-quarter fiscal 2018 results.

Check back later for our full write up on this SJM earnings report later!

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