uploads/2016/11/sjm-pm.png

How Did J.M. Smucker Perform in Fiscal 2Q17?

By

Updated

Price movement

J.M. Smucker (SJM) has a market cap of $15.0 billion and fell 3.9% to close at $124.85 per share on November 17, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -2.1%, -5.5%, and 3.4%, respectively, on the same day.

SJM is now trading 3.7% below its 20-day moving average, 5.7% below its 50-day moving average, and 7.3% below its 200-day moving average.

Article continues below advertisement

Related ETF and peers

The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) invests 2.6% of its holdings in SJM. The YTD price movement of RHS was 0.77% on November 17.

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

  • Mondelez International (MDLZ): $69.7 billion
  • ConAgra Foods (CAG): $22.3 billion
  • Hormel Foods (HRL): $20.2 billion

J.M. Smucker’s performance in fiscal 2Q17

J.M. Smucker reported fiscal 2Q17 net sales of $1.9 billion—a YoY (year-over-year) fall of 7.9%, as compared to net sales of $2.1 billion in fiscal 2Q16. Sales of US retail coffee, US retail consumer foods, US retail pet foods, and international and foodservice fell by 5.9%, 13.5%, 6.3%, and 2.5%, respectively, YoY in fiscal 2Q17.

The company’s gross profit margin and operating margin expanded by 90 basis points and 70 basis points, respectively, YoY in fiscal 2Q17. Its net income and EPS (earnings per share) rose to $177.3 million and $1.52, respectively, in fiscal 2Q17, as compared to $176.0 million and $1.47, respectively, in fiscal 2Q16. It reported non-GAAP EPS of $2.05 in fiscal 2Q17—a YoY rise of 7.3%.

SJM’s cash and cash equivalents and inventories rose by 10.9% and 14.3%, respectively, in fiscal 2Q17, as compared to fiscal 4Q16. It reported free cash flow of $102.6 million in fiscal 2Q17—a YoY fall of 51.4%.

Projections

SJM has made the following projection for fiscal 2017:

  • comparable net sales growth: 0% to -1%
  • adjusted EPS: $7.60–$7.75
  • free cash flow: $1 billion
  • capital expenditures: $240 million
  • effective tax rate: 33.0%

For ongoing analysis of this sector, visit Market Realist’s Consumer Discretionary page.

Advertisement

More From Market Realist