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The J.M. Smucker (SJM) Q2 Earnings Coming Up: What Awaits?
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The J. M. Smucker Company (SJM - Free Report) is likely to register a top-line decline when it reports second-quarter fiscal 2024 earnings on Dec 5. The Zacks Consensus Estimate for revenues is pegged at $1.96 billion, suggesting a decrease of 11.3% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has declined by a penny in the past 30 days to $2.46 per share. This indicates a rise of 2.5% from the year-ago quarter’s reported figure. SJM has a trailing four-quarter earnings surprise of 7.3%, on average.
Factors to Note
The J. M. Smucker has been gaining from its focus on core priorities, which include driving commercial excellence, reshaping the portfolio, streamlining the cost structure and unleashing its organization to win. Strength in such strategies has been helping the company navigate complex supply-chain challenges. These are also helping SJM improve in-store fundamentals and stock performance for the brands.
The J. M. Smucker has been implementing inflation-justified pricing actions across all businesses. The company’s commitment to increasing its focus and resources to reshape its portfolio to achieve sustainable growth across pet food and pet snacks, coffee and snacking categories has also been working well. These factors bode well for the quarter to be reported.
SJM concluded the divestiture of certain pet food brands in the fourth quarter of fiscal 2023 as part of a portfolio reshaping strategy. This brings the pet business structure to include 60% pet snacks and 40% cat food. The divestiture is likely to have impacted sales in the quarter under review. The Zacks Consensus Estimate for second-quarter sales in the U.S. Retail Pet Foods segment is currently pegged at $475 million, suggesting a decline from $765 million reported in the year-ago period.
On the other hand, SJM recently acquired Hostess Brands, a premier snacking company. The buyout is likely to have positively contributed to the second-quarter top line.
The J. M. Smucker Company Price, Consensus and EPS Surprise
However, the company has been dealing with rising costs. In its first-quarter earnings release, management stated that ongoing cost inflation, supply-chain bottlenecks and the broader macroeconomic landscape continue to affect SJM’s results and cause risks for fiscal 2024.
Apart from this, The J. M. Smucker’s bottom-line view for fiscal 2024 assumes elevated selling, distribution and administrative (SD&A) expenses. This includes pre-production costs associated with Uncrustables’ capacity expansion, elevated marketing expenditures and increased investments in liquid coffee.
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 carries a Zacks Rank #3 and has an Earnings ESP of -2.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:
Campbell Soup (CPB - Free Report) has an Earnings ESP of +0.07% and a Zacks Rank #3. The company is slated to witness a top-and-bottom-line decline when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for CPB’s quarterly revenues is pegged at $2.5 billion, which suggests a drop of 2.7% 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 Campbell Soup’s quarterly EPS has remained unchanged in the past 30 days at 87 cents, which suggests a decrease of 14.7% from the year-ago quarter’s level. CPB has a trailing four-quarter earnings surprise of 8.6%, on average.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank #3. The company is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $57.7 billion, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Costco’s quarterly EPS of $3.44 suggests an increase of almost 11% from the year-ago quarter’s levels. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.19% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly EPS of $2.27 suggests a rise from $2.00 reported in the year-ago quarter.
lululemon’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.19 billion, which indicates a rise of 17.8% from the figure reported in the prior-year quarter. lululemon has a trailing four-quarter earnings surprise of 6.8%, on average.
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The J.M. Smucker (SJM) Q2 Earnings Coming Up: What Awaits?
The J. M. Smucker Company (SJM - Free Report) is likely to register a top-line decline when it reports second-quarter fiscal 2024 earnings on Dec 5. The Zacks Consensus Estimate for revenues is pegged at $1.96 billion, suggesting a decrease of 11.3% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has declined by a penny in the past 30 days to $2.46 per share. This indicates a rise of 2.5% from the year-ago quarter’s reported figure. SJM has a trailing four-quarter earnings surprise of 7.3%, on average.
Factors to Note
The J. M. Smucker has been gaining from its focus on core priorities, which include driving commercial excellence, reshaping the portfolio, streamlining the cost structure and unleashing its organization to win. Strength in such strategies has been helping the company navigate complex supply-chain challenges. These are also helping SJM improve in-store fundamentals and stock performance for the brands.
The J. M. Smucker has been implementing inflation-justified pricing actions across all businesses. The company’s commitment to increasing its focus and resources to reshape its portfolio to achieve sustainable growth across pet food and pet snacks, coffee and snacking categories has also been working well. These factors bode well for the quarter to be reported.
SJM concluded the divestiture of certain pet food brands in the fourth quarter of fiscal 2023 as part of a portfolio reshaping strategy. This brings the pet business structure to include 60% pet snacks and 40% cat food. The divestiture is likely to have impacted sales in the quarter under review. The Zacks Consensus Estimate for second-quarter sales in the U.S. Retail Pet Foods segment is currently pegged at $475 million, suggesting a decline from $765 million reported in the year-ago period.
On the other hand, SJM recently acquired Hostess Brands, a premier snacking company. The buyout is likely to have positively contributed to the second-quarter top line.
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
However, the company has been dealing with rising costs. In its first-quarter earnings release, management stated that ongoing cost inflation, supply-chain bottlenecks and the broader macroeconomic landscape continue to affect SJM’s results and cause risks for fiscal 2024.
Apart from this, The J. M. Smucker’s bottom-line view for fiscal 2024 assumes elevated selling, distribution and administrative (SD&A) expenses. This includes pre-production costs associated with Uncrustables’ capacity expansion, elevated marketing expenditures and increased investments in liquid coffee.
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 carries a Zacks Rank #3 and has an Earnings ESP of -2.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:
Campbell Soup (CPB - Free Report) has an Earnings ESP of +0.07% and a Zacks Rank #3. The company is slated to witness a top-and-bottom-line decline when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for CPB’s quarterly revenues is pegged at $2.5 billion, which suggests a drop of 2.7% 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 Campbell Soup’s quarterly EPS has remained unchanged in the past 30 days at 87 cents, which suggests a decrease of 14.7% from the year-ago quarter’s level. CPB has a trailing four-quarter earnings surprise of 8.6%, on average.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank #3. The company is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $57.7 billion, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Costco’s quarterly EPS of $3.44 suggests an increase of almost 11% from the year-ago quarter’s levels. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.19% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly EPS of $2.27 suggests a rise from $2.00 reported in the year-ago quarter.
lululemon’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.19 billion, which indicates a rise of 17.8% from the figure reported in the prior-year quarter. lululemon has a trailing four-quarter earnings surprise of 6.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.