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Factors Setting the Tone for Smucker's (SJM) Q2 Earnings
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The J. M. Smucker Company (SJM - Free Report) is slated to release second-quarter fiscal 2020 results on Nov 22. The provider of pet foods as well as consumer foods and beverages delivered a positive earnings surprise of 0.8% in the last reported quarter.
The Zacks Consensus Estimate for fiscal second-quarter earnings declined by a penny in the past 30 days and is currently pegged at $2.15 per share. The projected figure suggests a decline of 0.9% from the year-ago quarter’s reported figure. The consensus mark for revenues is pegged at $1,998 million, which indicates a decline of 1.2% from the figure reported in prior-year quarter.
Factors to Note
Smucker is under pressure, thanks to the divestiture of the U.S. baking business. This has been weighing upon the International, Away from Home and U.S. Retail Consumer Foods segments. Adverse impacts from baking-business divestiture along with declines in private label pet food products are likely to have affected the top line in the second quarter.
Also, lower net price realization across some segments, unfavorable shipment timings and intense competition in the premium dog food business are headwinds for the company.
Nonetheless, gains from acquisitions and partnerships as well as a strong brand portfolio are upsides. Markedly, the buyout of Ainsworth has been yielding positively. Further, the company’s cost-saving initiatives and efforts to broaden presence in the e-commerce channel bode well.
The J. M. Smucker Company Price, Consensus and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Smucker this season. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Smucker carries a Zacks Rank #4 (Sell) and Earnings ESP of +0.84%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination to post an earnings beat:
Dollar General (DG - Free Report) has an Earnings ESP of +2.34% and a Zacks Rank #2.
Foot Locker (FL - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #3.
Today's Best Stocks from Zacks
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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 Setting the Tone for Smucker's (SJM) Q2 Earnings
The J. M. Smucker Company (SJM - Free Report) is slated to release second-quarter fiscal 2020 results on Nov 22. The provider of pet foods as well as consumer foods and beverages delivered a positive earnings surprise of 0.8% in the last reported quarter.
The Zacks Consensus Estimate for fiscal second-quarter earnings declined by a penny in the past 30 days and is currently pegged at $2.15 per share. The projected figure suggests a decline of 0.9% from the year-ago quarter’s reported figure. The consensus mark for revenues is pegged at $1,998 million, which indicates a decline of 1.2% from the figure reported in prior-year quarter.
Factors to Note
Smucker is under pressure, thanks to the divestiture of the U.S. baking business. This has been weighing upon the International, Away from Home and U.S. Retail Consumer Foods segments. Adverse impacts from baking-business divestiture along with declines in private label pet food products are likely to have affected the top line in the second quarter.
Also, lower net price realization across some segments, unfavorable shipment timings and intense competition in the premium dog food business are headwinds for the company.
Nonetheless, gains from acquisitions and partnerships as well as a strong brand portfolio are upsides. Markedly, the buyout of Ainsworth has been yielding positively. Further, the company’s cost-saving initiatives and efforts to broaden presence in the e-commerce channel bode well.
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
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Smucker this season. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Smucker carries a Zacks Rank #4 (Sell) and Earnings ESP of +0.84%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination to post an earnings beat:
Ross Stores (ROST - Free Report) has an Earnings ESP of +4.03% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General (DG - Free Report) has an Earnings ESP of +2.34% and a Zacks Rank #2.
Foot Locker (FL - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #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 >>