JM Smucker Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.45 per share, a rise of 12.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.40. Between one and three months ago, the average estimate moved up. It has risen from $1.44 during the last month. For the year, analysts are projecting profit of $5.20 per share, a rise of 9.9% from last year.
Past Earnings Performance: Last quarter, the company beat estimates by 17 cents, coming in at net income of $1.17 per share against an estimate of profit of. The company also topped expectations in the fourth quarter of the last fiscal year.
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Wall St. Revenue Expectations: Analysts are projecting a rise of 7.9% in revenue from the year-earlier quarter to $1.63 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.52 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.66 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 15.7% to $713.8 million while assets rose 9.5% to $1.8 billion.
Stock Price Performance: Between August 17, 2012 and November 12, 2012, the stock price rose $2.40 (2.9%), from $82.96 to $85.36. The stock price saw one of its best stretches over the last year between March 14, 2012 and April 2, 2012, when shares rose for 14 straight days, increasing 7.2% (+$5.45) over that span. It saw one of its worst periods between April 2, 2012 and April 16, 2012 when shares fell for 10 straight days, dropping 3.2% (-$2.63) over that span.
With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 14.9% over the last four quarters.
The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 4.3% over the past four quarters.
Analyst Ratings: There are mostly holds on the stock with nine of 16 analysts surveyed giving that rating.
A Look Back: In the first quarter, profit fell 0.6% to $110.9 million ($1 a share) from $111.5 million (98 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 15.2% to $1.37 billion from $1.19 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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