Consumer Sector Review: Smucker Disappoints, Kellogg Diamond Foods Rumor
The J.M. Smucker Company (NYSE:SJM): Food manufacturer J.M. Smucker (NYSE:SJM) reported Q3 adjusted EPS of $1.22, versus analysts’ consensus estimate of $1.41. The company’s revenue also came in lower than expected. “Although we expected volume to decline during the quarter, the magnitude of the decline was unexpected..and sell-through was disappointing,” explained Smucker CEO Richard Smucker. “Consumer take-away declined sharply in a number of our categories during the fall bake and holiday season,” said Smucker, adding that he expects over $500M of cost increases for the company’s full fiscal year.
Smucker has been covering these cost increases primarily with price hikes, the CEO added. The price increases have reduced sales volumes, the company said. On a positive note, Smucker said that the results don’t reflect fundamental changes that will affect the company’s business model. “We want to emphasize that we are confident in our long-term strategy and expect the consumer to adapt to adjusted market prices over the coming quarters,” added Smucker. Moreover, the company’s market share is still strong and commodity costs are moderating, added Smucker COO Vince Byrd. In mid-morning trading, Smucker sank $6.31, or 8.07%, to $71.84.
The shares closed at $71.60, down $6.55, or 8.38%, on the day. Its market capitalization is $8.12 billion.
B&G Foods, Inc. (NYSE:BGS): Sees FY12 capital expenditures to be approximately $12.0M. Cash interest expense is expected to be approximately $44.0M.
The shares closed at $22.20, down $0.24, or 1.07%, on the day. Its market capitalization is $1.06 billion.
The Procter & Gamble Co. (NYSE:PG): Speculation that Kellogg (NYSE:K) could follow up its buy of P&G’s (NYSE:PG) Pringles with a deal to buy Diamond Foods (NASDAQ:DMND) continues to circulate, with Kellogg CEO John Bryant notably telling Reuters that the “ability to do bolt-on acquisitions has probably expanded with the addition of business, according to The Cincinnati Business Courier.
The shares closed at $65.20, up $0.65, or 1.01%, on the day. Its market capitalization is $179.59 billion.
The Coca-Cola Company (NYSE:KO): The first quarterly dividend is payable April 1 to shareowners of record as of March 15.
Libbey Inc. (NYSE:LBY): Reports Q4 revenue $215.4M vs. consensus $227.80M
The shares closed at $12.19, up $0.97, or 8.65%, on the day. Its market capitalization is $179.69 million.
Green Mountain Coffee (NASDAQ:GMCR):T2’s Whitney Tilson says he’s not covering Green Mountain short.
The shares closed at $69.05, up $3.3, or 5.02%, on the day. Its market capitalization is $10.69 billion.
TRW Automotive Hldgs (NYSE:TRW): Reports Q4 revenue $4.0B vs. consensus $3.96B.
The shares closed at $47.43, up $5.96, or 14.37%, on the day. Its market capitalization is $5.87 billion.
Pool Corporation (NASDAQ:POOL): Reports revenue $270.4M vs. consensus $258.82M
The shares closed at $36.89, up $2.59, or 7.55%, on the day. Its market capitalization is $1.76 billion.
V.F. Corporation (NYSE:VFC): Says headwinds include foreign currency translation ad higher pension expense. Says “well on our way” toward achieving goal of 40% of revenues from international markets by 2015.
The shares closed at $147.92, up $4.67, or 3.26%, on the day. Its market capitalization is $16.32 billion.
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