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SJM Q1 Earnings & Revenues Miss Estimates, Sales Dip on Low Volumes
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Key Takeaways
SJM's Q1 earnings of $1.90 and sales of $2.11B missed estimates, both down year over year.
Results were hurt by divestitures, volume declines and higher commodity costs.
SJM now expects fiscal 2026 sales growth of 3-5% and EPS of $8.50-$9.50.
The J. M. Smucker Company ((SJM - Free Report) ) reported first-quarter fiscal 2026 results, wherein both top and bottom lines missed the Zacks Consensus Estimate. Both net sales and earnings experienced year-over-year declines.
SJM’s fiscal first-quarter results reflect the impact of some transactions, including the divestiture of certain Sweet Baked Snacks value brands (March 3, 2025) and the divestiture of the Voortman business (Dec. 2, 2024).
SJM’s Quarterly Performance: Key Metrics and Insights
Adjusted earnings of $1.90 per share missed the Zacks Consensus Estimate of $1.95. Also, the bottom line slumped 22% from $2.44 reported in the prior-year quarter.
The J. M. Smucker Company Price, Consensus and EPS Surprise
Net sales amounted to $2,113.3 million, which fell 1% year over year and missed the Zacks Consensus Estimate of $2,125 million. Excluding noncomparable net sales of last year associated with divestitures as well as currency movements, the top line increased 2%. The increase in comparable net sales was driven by a 6-percentage-point boost from net price realization, which was partially offset by a 4-percentage-point decline in volume/mix.
The gross profit dropped 40% to $474.7 million, due to elevated commodity costs, unfavorable impact of derivative gains and losses, unfavorable volume/mix and the noncomparable impact of divestitures, partially offset by better net price realization. The adjusted gross profit fell 11%.
The adjusted operating income fell 17% year over year to $370.3 million.
Decoding SJM’s Segmental Performance
U.S. Retail Coffee: The segment’s sales grew 15% to $717.2 million, backed by higher net price realization (up 18%), while volume/mix declined 2%. The segment’s profit went down $38.4 million to $134.2 million. The consensus estimate for segment sales was pegged at $699 million.
U.S. Retail Frozen Handheld and Spreads: Sales in the segment decreased $12.1 million to $484.7 million, while the consensus mark was $510 million. The volume/mix declined net sales by 2 percentage points and the net price realization decreased the metric by 1 percentage point. The segment’s profit tumbled 4% to $114.3 million.
U.S. Retail Pet Foods: The segment’s sales fell 8% to $368 million. The volume/mix had an 8-percentage point adverse impact on net sales, while net price realization remained neutral to net sales. The segment’s profit decreased 12% to $101.3 million. The Zacks Consensus Estimate for segment sales was pegged at $378 million.
Sweet Baked Snacks: Sales in the segment were $253.2 million, down 24% year over year. Excluding noncomparable sales related to divestitures, net sales declined 10%. Net sales were pressured by an 8-percentage-point decline in volume/mix and a 2-percentage-point decrease from net pricing realization. The consensus estimate for segment sales was pegged at $262 million. Segment profit slumped 54% to $34.2 million in the quarter.
International and Away From Home: Net sales increased 7% to $290.2 million compared with the Zacks Consensus Estimate of $281 million. Excluding unfavorable foreign currency exchange, net sales grew 7%. The volume/mix had a 2-percentage point negative effect and the net price realization had a positive impact of 9 percentage points on net sales. The segment’s profit increased 35% to $65.5 million.
SJM’s Financial Health Snapshot
The J. M. Smucker exited the quarter with cash and cash equivalents of $39.3 million, long-term debt of $7,038.3 million and total shareholders’ equity of $5,925.9 million.
Cash used for operating activities amounted to $10.6 million for the three months ended July 31, 2025. Free cash flow was negative $94.9 million in the same time frame.
Free cash flow for fiscal 2026 is now estimated at $975 million, up from the prior outlook of $875 million, while capital expenditures are expected to remain at $325 million.
What to Expect From SJM in Fiscal 2026
Fiscal 2026 net sales are anticipated to increase in the range of 3-5% compared with the previous view of 2-4%. This includes an impact related to the divestitures of the Voortman business and certain Sweet Baked Snacks value brands.
SJM anticipates comparable net sales to increase approximately 4.5-6.5%, up from the 3.5-5.5% range expected before, excluding noncomparable sales related to the divestitures. The growth indicates higher net price realization, partially offset by volume/mix declines.
The adjusted EPS for fiscal 2026 is envisioned in the band of $8.50 to $9.50. The company recorded an adjusted EPS of $10.12 in fiscal 2025. The bottom-line guidance takes into account an adjusted gross profit margin of about 35-35.5% and a roughly 3% rise in SD&A expenses.
Shares of this Zacks Rank #3 (Hold) company have lost 0.3% over the past three months compared with the industry’s decline of 0.7%.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 3.1% and 10.9%, respectively, from the prior-year levels. POST delivered a trailing four-quarter earnings surprise of 21.4%, on average.
The Chefs' Warehouse, Inc. ((CHEF - Free Report) ) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently carries a Zacks Rank of 2 (Buy). CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.4% and 19.1%, respectively, from the prior-year levels.
Smithfield Foods, Inc. ((SFD - Free Report) ) produces packaged meats and fresh pork in the United States and internationally. It holds a Zacks Rank #2 at present. SFD delivered a trailing four-quarter earnings surprise of 6.6%, on average.
The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 7.1% and 28.7%, respectively, from the prior-year levels.
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SJM Q1 Earnings & Revenues Miss Estimates, Sales Dip on Low Volumes
Key Takeaways
The J. M. Smucker Company ((SJM - Free Report) ) reported first-quarter fiscal 2026 results, wherein both top and bottom lines missed the Zacks Consensus Estimate. Both net sales and earnings experienced year-over-year declines.
SJM’s fiscal first-quarter results reflect the impact of some transactions, including the divestiture of certain Sweet Baked Snacks value brands (March 3, 2025) and the divestiture of the Voortman business (Dec. 2, 2024).
SJM’s Quarterly Performance: Key Metrics and Insights
Adjusted earnings of $1.90 per share missed the Zacks Consensus Estimate of $1.95. Also, the bottom line slumped 22% from $2.44 reported in the prior-year 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
Net sales amounted to $2,113.3 million, which fell 1% year over year and missed the Zacks Consensus Estimate of $2,125 million. Excluding noncomparable net sales of last year associated with divestitures as well as currency movements, the top line increased 2%. The increase in comparable net sales was driven by a 6-percentage-point boost from net price realization, which was partially offset by a 4-percentage-point decline in volume/mix.
The gross profit dropped 40% to $474.7 million, due to elevated commodity costs, unfavorable impact of derivative gains and losses, unfavorable volume/mix and the noncomparable impact of divestitures, partially offset by better net price realization. The adjusted gross profit fell 11%.
The adjusted operating income fell 17% year over year to $370.3 million.
Decoding SJM’s Segmental Performance
U.S. Retail Coffee: The segment’s sales grew 15% to $717.2 million, backed by higher net price realization (up 18%), while volume/mix declined 2%. The segment’s profit went down $38.4 million to $134.2 million. The consensus estimate for segment sales was pegged at $699 million.
U.S. Retail Frozen Handheld and Spreads: Sales in the segment decreased $12.1 million to $484.7 million, while the consensus mark was $510 million. The volume/mix declined net sales by 2 percentage points and the net price realization decreased the metric by 1 percentage point. The segment’s profit tumbled 4% to $114.3 million.
U.S. Retail Pet Foods: The segment’s sales fell 8% to $368 million. The volume/mix had an 8-percentage point adverse impact on net sales, while net price realization remained neutral to net sales. The segment’s profit decreased 12% to $101.3 million. The Zacks Consensus Estimate for segment sales was pegged at $378 million.
Sweet Baked Snacks: Sales in the segment were $253.2 million, down 24% year over year. Excluding noncomparable sales related to divestitures, net sales declined 10%. Net sales were pressured by an 8-percentage-point decline in volume/mix and a 2-percentage-point decrease from net pricing realization. The consensus estimate for segment sales was pegged at $262 million. Segment profit slumped 54% to $34.2 million in the quarter.
International and Away From Home: Net sales increased 7% to $290.2 million compared with the Zacks Consensus Estimate of $281 million. Excluding unfavorable foreign currency exchange, net sales grew 7%. The volume/mix had a 2-percentage point negative effect and the net price realization had a positive impact of 9 percentage points on net sales. The segment’s profit increased 35% to $65.5 million.
SJM’s Financial Health Snapshot
The J. M. Smucker exited the quarter with cash and cash equivalents of $39.3 million, long-term debt of $7,038.3 million and total shareholders’ equity of $5,925.9 million.
Cash used for operating activities amounted to $10.6 million for the three months ended July 31, 2025. Free cash flow was negative $94.9 million in the same time frame.
Free cash flow for fiscal 2026 is now estimated at $975 million, up from the prior outlook of $875 million, while capital expenditures are expected to remain at $325 million.
What to Expect From SJM in Fiscal 2026
Fiscal 2026 net sales are anticipated to increase in the range of 3-5% compared with the previous view of 2-4%. This includes an impact related to the divestitures of the Voortman business and certain Sweet Baked Snacks value brands.
SJM anticipates comparable net sales to increase approximately 4.5-6.5%, up from the 3.5-5.5% range expected before, excluding noncomparable sales related to the divestitures. The growth indicates higher net price realization, partially offset by volume/mix declines.
The adjusted EPS for fiscal 2026 is envisioned in the band of $8.50 to $9.50. The company recorded an adjusted EPS of $10.12 in fiscal 2025. The bottom-line guidance takes into account an adjusted gross profit margin of about 35-35.5% and a roughly 3% rise in SD&A expenses.
Shares of this Zacks Rank #3 (Hold) company have lost 0.3% over the past three months compared with the industry’s decline of 0.7%.
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Stocks to Consider
Post Holdings, Inc. ((POST - Free Report) ) operates as a consumer-packaged goods holding company in the United States and internationally. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 3.1% and 10.9%, respectively, from the prior-year levels. POST delivered a trailing four-quarter earnings surprise of 21.4%, on average.
The Chefs' Warehouse, Inc. ((CHEF - Free Report) ) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently carries a Zacks Rank of 2 (Buy). CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.4% and 19.1%, respectively, from the prior-year levels.
Smithfield Foods, Inc. ((SFD - Free Report) ) produces packaged meats and fresh pork in the United States and internationally. It holds a Zacks Rank #2 at present. SFD delivered a trailing four-quarter earnings surprise of 6.6%, on average.
The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 7.1% and 28.7%, respectively, from the prior-year levels.