JM Smucker: Anticipating Earnings in a Competitive Market
JM Smucker's Upcoming Earnings Report
JM Smucker SJM is gearing up to announce its latest quarterly earnings soon. Investors are keeping a watchful eye on this event to gauge the company's financial health and future direction.
Expected Financial Performance
Market analysts anticipate that JM Smucker will report an earnings per share (EPS) of $1.94. Investors are hopeful that the company not only meets this estimate but also provides encouraging guidance for the upcoming quarter.
Insights into Earnings History
In the last earnings report, JM Smucker exceeded expectations by posting an EPS of $2.31, which beat the estimate by $0.06. Consequently, the company's stock price experienced a slight uptick of 1.55% in the following trading session. This historical performance adds a layer of anticipation leading up to the upcoming report.
Share Price Overview
As of the latest trading positions, JM Smucker shares were valued at $111.55 and have shown a 3.12% decline over the past year. This decrease can weigh heavily on investors' sentiments, particularly those who have been holding the stock long term.
Market Sentiment and Analyst Expectations
Understanding market sentiments is crucial for investors, and the analysts’ consensus rating for JM Smucker stands at 'Outperform' based on assessments from 17 different analysts. The average price target of approximately $118.06 signifies a potential upside of about 5.84%, indicating optimism among market experts.
Comparative Analysis with Industry Peers
When scrutinizing JM Smucker relative to its competitors like Pilgrims Pride, Smithfield Foods, and The Campbell's, we see varying ratings and projections:
- Pilgrims Pride is currently rated as Neutral, with a projected one-year price target of $50.0, indicating a concerning potential downside of 55.18%.
- Smithfield Foods has an Outperform rating but also projects a significant downside of 73.55%, with a target price of $29.5.
- Similarly, The Campbell's maintains a Neutral rating with a target price of $34.33, suggesting a downside of 69.22%.
Metrics for the Food Industry
This comparative analysis reveals that JM Smucker's position in terms of revenue and profitability metrics is somewhat unique. The following table summarizes essential peer performance:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| JM Smucker | Outperform | -2.81% | $823.30M | -11.22% |
| Pilgrims Pride | Neutral | 4.34% | $715.29M | 10.35% |
| Smithfield Foods | Outperform | 10.96% | $499M | 3.00% |
| The Campbell's | Neutral | 4.47% | $728M | 1.70% |
Key Takeaways
From this analysis, it is clear that JM Smucker is currently struggling with revenue growth and gross profit margins, placing it at a disadvantage when compared to its peers. Nevertheless, its Return on Equity remains relatively favorable, suggesting effective management of shareholder equity.
About JM Smucker
JM Smucker is a well-known packaged food company, primarily operating through the retail channel. A significant portion of its revenue, about 73%, is generated from pet foods, coffee, and frozen goods. Key brands in their portfolio include Folgers, Dunkin', and Milk-Bone. Notably, the company enhanced its market footprint in the snack sector after acquiring Hostess Brands.
Financial Performance Challenges
The company continues to face hurdles in maintaining growth amidst competitive pressures. In its recent analysis, JM Smucker experienced a revenue decline of approximately -2.81% as of its last quarter ending, which is less than favorable compared to peers in the Consumer Staples sector. Furthermore, JM Smucker's net margin stands at a concerning -34.0%. It will need to find strategies to address its profitability challenges moving forward.
Frequently Asked Questions
What are the expected EPS figures for JM Smucker?
Analysts anticipate an EPS of $1.94 for JM Smucker in the upcoming earnings report.
How did JM Smucker perform in its last earnings report?
In its previous report, JM Smucker exceeded the EPS expectations, reporting $2.31, leading to a 1.55% rise in its share price.
What is JM Smucker's current share price?
As of the latest trading session, JM Smucker shares are trading around $111.55.
What is the consensus rating for JM Smucker?
The analysts' consensus rating for JM Smucker is 'Outperform', indicating positive sentiment among experts.
How does JM Smucker compare to its peers?
Compared to its peers, JM Smucker is encountering challenges with revenue growth, yet has a better Return on Equity compared to some competitors.
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