uploads///JM Smuckers Stock Price Trend

J.M. Smucker Stock: Its Reaction to the Earnings Release

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Sep. 8 2015, Published 8:41 a.m. ET

Stock price performance

On August 27, 2015, the J.M. Smucker Company (SJM) announced results for 1Q16, which ended July 31, 2015. The stock currently trades on the New York Stock Exchange. SJM stock rose 6.54% that day, closing at $116.29, and has been rising since then.

The increase in stock price broke the company’s recent trend. In the past one month, the stock has been trading in the range of $106.85–$113.49. It closed at $116.88 on September 3.

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Management’s remarks

Richard Smucker, J.M. Smucker’s chief executive officer, stated in the earnings press release, “We are off to a solid start this fiscal year, with net sales increasing 47 percent and non-GAAP operating income growth of 37 percent.”

According to management, the Big Food acquisition and new products were the main contributors to performance. Dunkin’ Donuts K-Cup pods have shown good initial results since their launch. SJM shipped more than 100 million cups during the first quarter. The company is on track to achieve its full-year expectations for net revenue and earnings and is optimistic on the initiatives planned to support future growth.

Management also expressed positive views regarding the integration of the pet food business. The first quarter results of the pet food segment show that the company’s entry into the pet food market was timely and strategically correct for continued growth.

About J.M. Smucker

The J.M. Smucker Company manufactures and markets branded food products such as fruit spreads, ice cream toppings, and beverages. It operates through the following four segments:

  1. U.S. Retail Coffee
  2. U.S. Retail Consumer Food
  3. U.S. Retail Pet Foods
  4. International and Foodservice

J.M. Smucker is a manufacturer and marketer of consumer food and beverage products and pet food and pet snacks in North America with projected annual net sales of approximately $8 billion. Smucker has its headquarters in Orrville, Ohio.

Competition

J.M. Smucker’s (SJM) main competitors in the industry are Hormel Foods (HRL), B&G Foods (BGS), and ConAgra Foods (CAG). These three stocks trade on the New York Stock Exchange, closing at $60.67, $36.17, and $41.23, respectively, on September 4, 2015.

The Consumer Staples Select Sector SPDR ETF (XLP) invests 0.76% in SJM. The Power Shares S&P 500 Low Volatility ETF (SPLV) invests 0.96% of its portfolio in SJM.

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