JM Smucker (NYSE:SJM) Gains on Strong Q2 Performance
Market News

JM Smucker (NYSE:SJM) Gains on Strong Q2 Performance

Story Highlights

JM Smucker delivered a robust second-quarter performance marked by a rise in comparable sales on the back of volume and pricing gains.

JM Smucker (NYSE:SJM) shares are trending higher today after the branded food and beverage company delivered better-than-expected earnings for the second quarter. Indeed, EPS of $2.59 outpaced expectations by $0.12. On the other hand, its revenue declined by 12.2% year-over-year to $1.94 billion, landing in line with estimates.

However, when excluding SJM’s pet foods divestiture and an adverse foreign currency impact, the company’s top line increased by 7% during the quarter. This increase in comparable net sales was driven by favorable volume/mix, pricing gains, and momentum in frozen sandwich sales.

The company generated $176.9 million in cash from operating activities. At the same time, higher capital expenditures resulted in its free cash flow declining to $28.2 million from $102.9 million in the year-ago period.

For Fiscal Year 2024, SJM expects comparable net sales to increase by 8.5% to 9%. In addition, EPS for the year is seen landing between $9.25 and $9.65, compared to the previous outlook in the range of $9.45 to $9.85.

What is the Stock Price Forecast for SJM?

Overall, the Street has a Hold consensus rating on JM Smucker. After a nearly 27% slide in its share price over the past year, the average SJM price target of $130.20 implies a 15.8% potential upside in the stock.

Read full Disclosure

Related Articles
TheFlyJ.M. Smucker downgraded to Hold from Buy at Stifel
TheFlyJ.M. Smucker to divest Voortman cookie brand for $305M
TheFlyJ.M. Smucker price target lowered to $121 from $123 at Barclays
Go Ad-Free with Our App