J. M. Smucker Company Earnings Cheat Sheet: Consecutive Profit Quarter Streak Stays Intact

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

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

Results: Net income for the processed and packaged goods company fell to $127.2 million ($1.12 per share) vs. $149.7 million ($1.25 per share) a year earlier. This is a decline of 15% from the year earlier quarter.

Revenue: Rose 18.4% to $1.51 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SJM reported adjusted net income of $1.29 per share. By that measure, the company fell short of mean estimate of $1.40 per share. Analysts were expecting revenue of $1.49 billion.

Quoting Management: “We delivered record sales growth in the quarter including robust contributions from product innovation such as our K-Cups and seasonal offerings.As we head into the key holiday period, our strong leading brands are trusted and remain well positioned to meet the varying needs of our consumers, including helping to bring their families together to share memorable meals and moments,” commented Richard Smucker, Chief Executive Officer.”Additionally, we are effectively managing this period of significant cost inflation, where our cost of goods sold increased approximately 30 percent for the quarter, yet, we posted gross profit growth.As always, our focus remains on effectively managing the balance between volume, market share, and profitability, while continuing to invest in our brands.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 13.5% to $1.19 billion in the first quarter. The figure rose 11% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.8% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 4 cents, and in the fourth quarter of the last fiscal year, it was ahead by 2 cents.

While the company has been profitable for the last nine quarters, income has fallen year over year by an average of 4.7% over the past five quarters. The quarter hit the hardest was the fourth quarter of the last fiscal year, that saw a 21.3% drop.

Looking Forward: The average estimate for the third quarter remains unchanged at $1.46 a share. For the fiscal year, the average estimate has moved down from $5.13 a share to $5.12 over the last thirty days.

Competitors to Watch: TreeHouse Foods Inc. (NYSE:THS), Ralcorp Holdings, Inc. (NYSE:RAH), Kraft Foods Inc. (NYSE:KFT), 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).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)