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J.M. Smucker Company Declares Dividend of $0.75 per Share

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Price movement

J.M. Smucker Company (SJM) has a market cap of $15.5 billion. It rose 0.53% to close at $133.57 per share on January 20, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.3%, 3.2%, and 4.3%, respectively, on the same day.

SJM is trading 3.0% above its 20-day moving average, 3.9% above its 50-day moving average, and 1.3% 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 2.6% of its holdings in SJM. The YTD price movement of RHS was 1.4% on January 20.

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

  • Mondelez International (MDLZ) — $70.3 billion
  • Hormel Foods (HRL) — $19.1 billion
  • ConAgra Foods (CAG) — $17.0 billion

SJM declared dividend

The J.M. Smucker Company has declared a dividend of $0.75 per share on its common stock. The dividend is payable on March 1, 2017, to shareholders of record at the close of business on February 10, 2017.

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

J.M. Smucker (SJM) reported fiscal 2Q17 net sales of $1.9 billion, a YoY (year-over-year) fall of 7.9% 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 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 compared to $176.0 million and $1.47, respectively, in fiscal 2Q16. The company reported non-GAAP[1. generally accepted accounting practices] EPS of $2.05 in fiscal 2Q17, a YoY rise of 7.3%.

SJM’s cash and cash equivalents and inventories rose 10.9% and 14.3%, respectively, between fiscal 2Q17 and 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 projections 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%

In the final part of this series, we’ll look at Herbalife (HLF).

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