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The J.M. Smucker (SJM) Queued Up for Q3 Earnings: Things to Note
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The J. M. Smucker Company (SJM - Free Report) is likely to witness a year-over-year decrease in the top and the bottom line when it reports third-quarter fiscal 2022 earnings on Mar 1. The Zacks Consensus Estimate for revenues is pegged at $2,052 million, suggesting a dip of 1.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has risen by nearly 1% over the past seven days to $2.08 per share, indicating a decline of 15.1% from the figure reported in the prior-year period. The company, which manufactures and markets branded food and beverage products, has a trailing four-quarter earnings surprise of 10.8%, on average. J. M. Smucker delivered an earnings surprise of 0.9% in the last reported quarter.
The J. M. Smucker Company Price, Consensus and EPS Surprise
The J. M. Smucker has been encountering cost inflation as well as supply-chain and transportation challenges along with isolated labor shortages. During the second quarter of fiscal 2022, adjusted gross profit fell 7% to $730.9 million, mainly due to increased costs for commodities, manufacturing, transportation and packaging. On its second-quarter earnings call, the company stated that it expects to experience higher costs for the rest of fiscal 2022, mainly due to green coffee and transportation. The company also expects incremental manufacturing expenses, mainly for labor and business continuity plans. This raises concerns for the quarter under review.
The gross margin is likely to have declined sequentially by more than 150 basis points in the fiscal third quarter. However, management is focused on undertaking inflation-justified pricing actions, revenue growth management strategies as well as productivity initiatives to minimize the effect of these headwinds. SJM is also benefiting from the revival of the Away from Home division. Apart from this, a focus on core strategies, which include driving commercial excellence, reshaping the portfolio, streamlining the cost structure and unleashing its organization to win, bodes well.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for The J. M. Smucker this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
The J. M. Smucker currently has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.91%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Companies Likely to Post a Beat
Hostess Brands has an Earnings ESP of +4.35% and a Zacks Rank #2. Hostess Brands is anticipated to register top-and bottom-line growth when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for TWNK’s quarterly revenues is pegged at $288 million, indicating a rise of 12.5% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hostess Brands’ bottom line has remained unchanged in the past 30 days at 23 cents per share. The consensus estimate for earnings suggests growth of 9.5% from the year-ago quarter’s reported figure. Hostess Brands delivered an earnings beat of 5%, on average, in the trailing four quarters.
Costco (COST - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3. Costco is anticipated to register a top-and bottom-line increase when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $51.1 billion, indicating growth of about 14% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Costco’s bottom line has risen by 1.1% in the past 30 days to $2.67 per share. The consensus estimate for earnings suggests a jump of 24.8% from the year-ago quarter’s reported figure. Costco delivered an earnings beat of 8.3%, on average, in the trailing four quarters.
Kroger (KR - Free Report) has an Earnings ESP of +12.68% and carries a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $34.38 billion, which suggests a rise of 5.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kroger’s quarterly earnings has risen by a penny in the past 30 days at 71 cents per share, suggesting a drop of 12.4% from the year-ago quarter’s reported number. KR has a trailing four-quarter earnings surprise of 20.3%, on average.
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The J.M. Smucker (SJM) Queued Up for Q3 Earnings: Things to Note
The J. M. Smucker Company (SJM - Free Report) is likely to witness a year-over-year decrease in the top and the bottom line when it reports third-quarter fiscal 2022 earnings on Mar 1. The Zacks Consensus Estimate for revenues is pegged at $2,052 million, suggesting a dip of 1.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has risen by nearly 1% over the past seven days to $2.08 per share, indicating a decline of 15.1% from the figure reported in the prior-year period. The company, which manufactures and markets branded food and beverage products, has a trailing four-quarter earnings surprise of 10.8%, on average. J. M. Smucker delivered an earnings surprise of 0.9% in the last reported quarter.
The J. M. Smucker Company Price, Consensus and EPS Surprise
The J. M. Smucker Company price-consensus-eps-surprise-chart | The J. M. Smucker Company Quote
Key Factors to Consider
The J. M. Smucker has been encountering cost inflation as well as supply-chain and transportation challenges along with isolated labor shortages. During the second quarter of fiscal 2022, adjusted gross profit fell 7% to $730.9 million, mainly due to increased costs for commodities, manufacturing, transportation and packaging. On its second-quarter earnings call, the company stated that it expects to experience higher costs for the rest of fiscal 2022, mainly due to green coffee and transportation. The company also expects incremental manufacturing expenses, mainly for labor and business continuity plans. This raises concerns for the quarter under review.
The gross margin is likely to have declined sequentially by more than 150 basis points in the fiscal third quarter. However, management is focused on undertaking inflation-justified pricing actions, revenue growth management strategies as well as productivity initiatives to minimize the effect of these headwinds. SJM is also benefiting from the revival of the Away from Home division. Apart from this, a focus on core strategies, which include driving commercial excellence, reshaping the portfolio, streamlining the cost structure and unleashing its organization to win, bodes well.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for The J. M. Smucker this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
The J. M. Smucker currently has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.91%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Companies Likely to Post a Beat
Hostess Brands has an Earnings ESP of +4.35% and a Zacks Rank #2. Hostess Brands is anticipated to register top-and bottom-line growth when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for TWNK’s quarterly revenues is pegged at $288 million, indicating a rise of 12.5% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hostess Brands’ bottom line has remained unchanged in the past 30 days at 23 cents per share. The consensus estimate for earnings suggests growth of 9.5% from the year-ago quarter’s reported figure. Hostess Brands delivered an earnings beat of 5%, on average, in the trailing four quarters.
Costco (COST - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3. Costco is anticipated to register a top-and bottom-line increase when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $51.1 billion, indicating growth of about 14% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Costco’s bottom line has risen by 1.1% in the past 30 days to $2.67 per share. The consensus estimate for earnings suggests a jump of 24.8% from the year-ago quarter’s reported figure. Costco delivered an earnings beat of 8.3%, on average, in the trailing four quarters.
Kroger (KR - Free Report) has an Earnings ESP of +12.68% and carries a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $34.38 billion, which suggests a rise of 5.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kroger’s quarterly earnings has risen by a penny in the past 30 days at 71 cents per share, suggesting a drop of 12.4% from the year-ago quarter’s reported number. KR has a trailing four-quarter earnings surprise of 20.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.