J. M. Smucker (NYSE:SJM) Announces Quarterly Earnings Results, Beats Estimates By $0.11 EPS

J. M. Smucker (NYSE:SJM) announced its quarterly earnings results on Thursday. The company reported $2.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.27 by $0.11, Briefing.com reports. The company had revenue of $2.34 billion for the quarter, compared to the consensus estimate of $2.32 billion. J. M. Smucker had a negative net margin of 13.61% and a positive return on equity of 15.26%. J. M. Smucker’s revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.61 EPS.

Here are the key takeaways from J. M. Smucker’s conference call:

• Management described the recent engagement with activist Elliott as “constructive,” highlighting alignment on operating improvements, disciplined capital allocation and governance changes, including two new board additions to support strategic execution.
• Sweet baked snacks (Hostess) remains a drag with low double‑digit exit declines, an Emporia plant fire and the Indianapolis closure weighing on results, and the company will begin amortizing the Hostess trademark (contributing to a full‑year amortization outlook of approximately $210 million).
• Coffee outlook is constructive — management expects green‑coffee deflation and the lapping of roughly $75 million of tariffs to drive profit and margin improvement, with a mid‑20s segment profit margin expected in Q4.
• Company kept fiscal EPS guidance centered on a $9 midpoint (range remains wide), saying coffee upside could offset sweet baked softness while SG&A savings from timing and efficiencies are largely already reflected in guidance.
• Key growth engines performed well: Uncrustables grew ~10% overall with expanded C‑store and away‑from‑home distribution and ~3.5 million new households, and pet brands (Meow Mix, Milk‑Bone) showed continued innovation‑driven growth despite softness in some dog‑snack SKUs.

J. M. Smucker Stock Performance

NYSE:SJM traded up $9.72 during mid-day trading on Thursday, hitting $116.32. 4,529,670 shares of the company’s stock traded hands, compared to its average volume of 1,794,452. The firm has a 50 day moving average of $103.44 and a two-hundred day moving average of $105.32. The company has a current ratio of 0.89, a quick ratio of 0.37 and a debt-to-equity ratio of 1.16. J. M. Smucker has a 12 month low of $93.30 and a 12 month high of $121.48. The firm has a market capitalization of $12.41 billion, a price-to-earnings ratio of -10.38, a price-to-earnings-growth ratio of 6.68 and a beta of 0.23.

J. M. Smucker Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 2nd. Shareholders of record on Friday, February 13th will be given a dividend of $1.10 per share. The ex-dividend date of this dividend is Friday, February 13th. This represents a $4.40 dividend on an annualized basis and a yield of 3.8%. J. M. Smucker’s dividend payout ratio is presently -39.22%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Weiss Ratings reissued a “sell (d)” rating on shares of J. M. Smucker in a report on Wednesday, January 21st. Stifel Nicolaus lowered their price objective on J. M. Smucker from $115.00 to $110.00 and set a “hold” rating for the company in a research report on Wednesday, November 26th. TD Cowen lifted their target price on shares of J. M. Smucker from $105.00 to $112.00 and gave the company a “hold” rating in a report on Friday, February 20th. Morgan Stanley reaffirmed an “equal weight” rating and set a $105.00 price target (down from $115.00) on shares of J. M. Smucker in a research note on Friday, January 16th. Finally, Citigroup reiterated a “hold” rating on shares of J. M. Smucker in a research report on Wednesday, November 26th. Eight research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $116.36.

Key J. M. Smucker News

Here are the key news stories impacting J. M. Smucker this week:

• Positive Sentiment: Q3 results beat Street estimates — Smucker reported $2.38 EPS vs. $2.27 expected and revenue of $2.34B (up 7% y/y), driven largely by pricing in coffee. This upside is a primary near-term catalyst supporting the stock. Smucker Q3 Earnings Beat Estimates, Sales Up 7% on Pricing Gains
• Positive Sentiment: Agreement with activist Elliott — Smucker agreed to add two independent directors (Bruce Chung and David Singer). The deal reduces activist uncertainty and should be viewed as governance-positive by many investors. The J.M. Smucker Co. Appoints Two New Independent Directors
• Positive Sentiment: Analyst support — Recent upgrades/positive actions (Bank of America upgrade to Buy; JPMorgan raised its price target) add buy-side momentum and institutional validation ahead of/after results. Bank of America Upgrades J. M. Smucker (NYSE:SJM) to Buy
• Neutral Sentiment: Coffee pricing helped sales growth — Higher coffee prices boosted top-line performance this quarter, but that benefit is volatile and tied to commodity cycles; it’s a mixed, watch-list factor. J.M. Smucker’s FQ3 sales perk up on higher coffee prices
• Negative Sentiment: Costs and operational headwinds persist — EPS declined y/y and margins were pressured by higher green-coffee costs, tariffs and a recent plant fire that prompted a lower sales-growth outlook; these are key downside risks to monitor. J.M. Smucker Sales Rise on Higher Coffee Prices / Adds Directors in Deal With Activist Firm Elliott

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP grew its position in shares of J. M. Smucker by 33.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 3,392,300 shares of the company’s stock worth $331,807,000 after buying an additional 850,943 shares during the period. Invesco Ltd. boosted its position in J. M. Smucker by 5.8% during the fourth quarter. Invesco Ltd. now owns 2,783,272 shares of the company’s stock valued at $272,232,000 after purchasing an additional 151,872 shares during the last quarter. Morgan Stanley grew its position in shares of J. M. Smucker by 16.8% in the 4th quarter. Morgan Stanley now owns 2,486,596 shares of the company’s stock valued at $243,214,000 after acquiring an additional 357,253 shares during the period. Two Sigma Investments LP raised its stake in J. M. Smucker by 6,854.4% in the third quarter. Two Sigma Investments LP now owns 1,527,962 shares of the company’s stock valued at $165,937,000 after buying an additional 1,505,991 shares during the period. Finally, Marshall Wace LLP boosted its position in J. M. Smucker by 41.7% during the fourth quarter. Marshall Wace LLP now owns 1,240,592 shares of the company’s stock worth $121,342,000 after purchasing an additional 364,854 shares during the period. Institutional investors own 81.66% of the company’s stock.

About J. M. Smucker

The J. M. Smucker Company is a diversified food and beverage manufacturer and marketer known for a portfolio of well-established consumer brands. The company’s main business activities include the production and distribution of fruit spreads, peanut butter, coffee and coffee filters, as well as pet food and pet snacks. Smucker’s core product lines serve both retail and foodservice customers through grocery chains, mass merchandisers, club stores, convenience outlets and e-commerce channels.

Among its leading brands are Smucker’s® fruit spreads, Jif® peanut butter, Folgers® and Dunkin’® coffees, and Café Bustelo® coffee.