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The J.M. Smucker Company Declares Dividend of $0.75 Per Share

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Price movement

The J.M. Smucker Company (SJM) has a market cap of $15.1 billion. It rose 0.18% to close at $130.01 per share on October 21, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.6%, -5.7%, and 7.0%, respectively, on the same day. SJM is trading 2.8% below its 20-day moving average, 6.7% below its 50-day moving average, and 3.4% below its 200-day moving average.

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Related ETF and peers

The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) invests 2.9% of its holdings in SJM. RHS tracks an equal-weighted index of large-cap US consumer staples stocks drawn from the S&P 500. The YTD price movement of RHS was 3.8% on October 21.

The market caps of SJM’s closest competitors are as follows:

  • Mondelēz International (MDLZ) – $65.5 billion
  • Hormel Foods (HRL) – $20.0 billion
  • ConAgra Foods (CAG) – $21.1 billion

SJM declares dividend

The J.M. Smucker Company has declared a dividend of $0.75 per share on its common stock. The dividend is payable on December 1, 2016, to shareholders of record at the close of business on November 11, 2016.

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Performance in fiscal 1Q17

The J.M. Smucker Company reported fiscal 1Q17 net sales of ~$1.8 billion, a fall of 7.2% from the ~$2.0 billion reported in fiscal 1Q16. Sales of its US Retail Coffee, US Retail Consumer Foods, US Retail Pet Foods, and International & Foodservice fell 9.2%, 7.8%, 5.5%, and 3.5%, respectively, between fiscal 1Q16 and fiscal 1Q17. The company’s gross profit margin and operating income rose 6.6% and 10.0%, respectively.

Its net income and EPS (earnings per share) rose to $170.0 million and $1.46, respectively, in fiscal 1Q17, compared with $136.4 million and $1.14, respectively, in fiscal 1Q16. It reported non-GAAP (generally accepted accounting principles) EBITDA (earnings before interest, tax, depreciation, and amortization) and non-GAAP EPS of $400.6 million and $1.86, respectively, in fiscal 1Q17, a rise of 6.6% and 16.3% over fiscal 1Q16.

SJM’s cash and cash equivalents fell 0.18%, and its inventories rose 12.8% between fiscal 4Q16 and fiscal 1Q17. Its current ratio rose to 1.4x, and its long-term debt-to-equity ratio fell to ~1.1x in fiscal 1Q17, compared with 1.3x and ~1.1x, respectively, in fiscal 4Q16.

Projections

The J.M. Smucker Company (SJM) made the following projections for fiscal 2017:

  • comparable net sales growth: 0% to -1%
  • adjusted EPS: $7.60–$7.75
  • free cash flow: $1.0 billion
  • capital expenditure: $240 million
  • effective tax rate: 33.5%

Next, we’ll take a look at The Estée Lauder Companies (EL).

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