J. M. Smucker Co. Earnings Cheat Sheet: Profit Increase Breaks Streak of Falling Profits

S&P 500 (NYSE:SPY) component J. M. Smucker Company (NYSE:SJM) reported its results for the first quarter. The J. M. Smucker Company manufactures and markets branded food products on a worldwide basis.

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J. M. Smucker Company Earnings Cheat Sheet for the First Quarter

Results: Net income for the processed and packaged goods company rose to $111.5 million (98 cents per share) vs. $102.9 million (86 cents per share) in the same quarter a year earlier. This marks a rise of 8.4% from the year earlier quarter.

Revenue: Rose 13.5% to $1.19 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SJM reported adjusted net income of $1.12 per share. By that measure, the company beat the mean estimate of $1.08 per share. It fell short of the average revenue estimate of $1.25 billion.

Quoting Management: “We delivered strong sales and earnings growth this quarter, with net price realization across most categories and contributions from the recently acquired Rowland Coffee business,” commented Richard Smucker, Chief Executive Officer. “While the market place remains very competitive, we are confident in our team’s ability to respond swiftly in the current environment to meet the needs of our consumers. Additionally, we are encouraged that costs have moderated in the green coffee markets. As a result, we are confident in confirming our earnings outlook for the fiscal year. Further, we remain committed to building our brands for the long-term.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by 7 cents in the second quarter of the last fiscal year.

Revenue has now gone up for three straight quarters. In the fourth quarter of the last fiscal year, revenue rose 11% to $1.19 billion while the figure rose 8.8% in the third quarter of the last fiscal year from the year earlier.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the fourth quarter of the last fiscal year, net income fell 21.3% while the figure dropped in the third quarter of the last fiscal year.

Competitors to Watch: TreeHouse Foods Inc. (NYSE:THS), Ralcorp Holdings, Inc. (NYSE:RAH), The Hain Celestial Group, Inc. (NASDAQ:HAIN), General Mills, Inc. (NYSE:GIS), ConAgra Foods, Inc. (NYSE:CAG), B&G Foods, Inc. (NYSE:BGS), Farmer Brothers Co. (NASDAQ:FARM), Lancaster Colony Corp. (NASDAQ:LANC), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), and H.J. Heinz Company (NYSE:HNZ).

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(Source: Xignite Financials)