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Factors Likely to Decide Smucker's (SJM) Fate in Q4 Earnings
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The J. M. Smucker Company (SJM - Free Report) is slated to release fourth-quarter fiscal 2019 results on Jun 6. The company’s earnings have underperformed the Zacks Consensus Estimate by an average of 2.2% in three of the trailing four quarters.
Let’s see how this provider of pet food and pet snacks, among other products, is positioned ahead of the upcoming quarterly results.
What to Expect?
The Zacks Consensus Estimate for fourth-quarter earnings has remained stable in the past 30 days at $1.97, indicating growth of 2.1% from the year-ago quarter’s reported figure. Further, the consensus mark for revenues is $1,936 million, suggesting a rise of 8.7% from the year-ago quarter’s reported figure.
Smucker is focused on cost containment and optimization efforts to ensure higher profitability. Further, it is on track to generate cost savings and synergies from the Ainsworth buyout. Additionally, the company is committed toward investing in its growth brands. These factors are likely to have a positive impact on the fiscal fourth-quarter results. This apart, robust e-commerce growth in both coffee and pet food segments bodes well for Smucker’s top line in the impending quarter.
However, the company is seeing elevated marketing costs, which are anticipated to continue in the upcoming quarter. Moreover, the buyout of Ainsworth has led to rise in selling, distribution, and administrative (SD&A) expenses and interest expenses for quite some time now. These downsides may dent the company’s bottom-line performance to some extent.
What the Zacks Model Unveils
Our proven model doesn’t show a beat for Smucker this earnings season. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Smucker carries a Zacks Rank #3 (Hold) but has an Earnings ESP of 0.00%, which makes surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to beat on earnings in the upcoming releases.
J&J Snack Foods Corp (JJSF - Free Report) has an Earnings ESP of +0.98% and sports a Zacks Rank #1.
Post Holdings (POST - Free Report) has an Earnings ESP of +3.30% and carries a Zacks Rank of 3.
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Factors Likely to Decide Smucker's (SJM) Fate in Q4 Earnings
The J. M. Smucker Company (SJM - Free Report) is slated to release fourth-quarter fiscal 2019 results on Jun 6. The company’s earnings have underperformed the Zacks Consensus Estimate by an average of 2.2% in three of the trailing four quarters.
Let’s see how this provider of pet food and pet snacks, among other products, is positioned ahead of the upcoming quarterly results.
What to Expect?
The Zacks Consensus Estimate for fourth-quarter earnings has remained stable in the past 30 days at $1.97, indicating growth of 2.1% from the year-ago quarter’s reported figure. Further, the consensus mark for revenues is $1,936 million, suggesting a rise of 8.7% from the year-ago quarter’s reported figure.
The J. M. Smucker Company Price and EPS Surprise
The J. M. Smucker Company price-eps-surprise | The J. M. Smucker Company Quote
Factors Influencing the Stock
Smucker is focused on cost containment and optimization efforts to ensure higher profitability. Further, it is on track to generate cost savings and synergies from the Ainsworth buyout. Additionally, the company is committed toward investing in its growth brands. These factors are likely to have a positive impact on the fiscal fourth-quarter results. This apart, robust e-commerce growth in both coffee and pet food segments bodes well for Smucker’s top line in the impending quarter.
However, the company is seeing elevated marketing costs, which are anticipated to continue in the upcoming quarter. Moreover, the buyout of Ainsworth has led to rise in selling, distribution, and administrative (SD&A) expenses and interest expenses for quite some time now. These downsides may dent the company’s bottom-line performance to some extent.
What the Zacks Model Unveils
Our proven model doesn’t show a beat for Smucker this earnings season. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Smucker carries a Zacks Rank #3 (Hold) but has an Earnings ESP of 0.00%, which makes surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to beat on earnings in the upcoming releases.
General Mills (GIS - Free Report) has an Earnings ESP of +1.18% and flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
J&J Snack Foods Corp (JJSF - Free Report) has an Earnings ESP of +0.98% and sports a Zacks Rank #1.
Post Holdings (POST - Free Report) has an Earnings ESP of +3.30% and carries a Zacks Rank of 3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>