SJM•SJM•J.M. Smucker reported fiscal first-quarter revenue rose 5% and beat analyst expectations. Adjusted EPS for the quarter rose 71% to $3.24, also above expectations, aided by tariff refunds.
Key details from the report:
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q1 Sales | Beat | $2.22 bln | $2.13 bln (12 Analysts) |
| Q1 Adjusted EPS | Beat | $3.24 | $2.22 (14 Analysts) |
| Q1 EPS | $3.03 | ||
| Q1 Net Income | $324.30 mln | ||
| Q1 Adjusted Operating Income | Beat | $540.70 mln | $390.12 mln (10 Analysts) |
| Q1 Operating Income | $511.60 mln |
The current average analyst rating on the shares is "buy," with 11 "strong buy" or "buy," 8 "hold" and no "sell" or "strong sell" recommendations. The average consensus recommendation for the food processing peer group is "hold."
Wall Street's median 12-month price target for The J. M. Smucker Company is $129.00, about 2.8% above its August 25 closing price of $125.45. The stock recently traded at 12 times the next 12-month earnings versus a P/E of 10 three months ago.
The company said results were aided by $115 million in tariff refunds, which provided a $0.84 per share benefit to adjusted EPS. Higher net pricing for coffee drove net sales growth, with U.S. Retail Coffee segment sales up 13%. Gross profit more than doubled, primarily reflecting lower costs and favorable derivative impacts.
Smucker now sees FY27 net sales declining 1.0% to 2.0% versus the prior year. The company raised FY27 adjusted EPS guidance to $10.50-$11.00 and increased its FY27 free cash flow outlook to $1.1 billion.
