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The J.M. Smucker Company

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Shares of Smucker have underperformed the industry in the past three months, which can be blamed on its fourth-quarter fiscal 2018 results wherein both top and bottom line missed the Zacks Consensus Estimate. The results were impacted by higher freight costs, which may weigh on its margins in near future as the company expects freight headwinds to linger into 2019. Also, its coffee, and International and Away from Home segments sales were hurt by lower net price realization.  Although the above-mentioned hurdles persist, the company’s Uncrustable brand and K-Cup business are performing well with significant sales growth. Smucker’s recent acquisition of Ainsworth is likely to strengthen its pet’s snacks portfolio. It is also taking restructuring actionsto improve its e-commerce channel. Additionally, Smucker remains on track with its cost-saving initiative with $80 million savings expected to be realized in 2019.

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