J. M. Smucker Company Earnings: Second Quarter of Profit Decrease

S&P 500 (NYSE:SPY) component J. M. Smucker Company (NYSE:SJM) reported its results for the third 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 Third Quarter

Results: Net income for the processed and packaged goods company fell to $116.8 million ($1.03 per share) vs. $132 million ($1.11 per share) a year earlier. This is a decline of 11.5% from the year earlier quarter.

Revenue: Rose 11.8% to $1.47 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: J. M. Smucker Company reported adjusted net income of $1.22 per share. By that measure, the company fell short of mean estimate of $1.41 per share. It fell short of the average revenue estimate of $1.54 billion.

Quoting Management: “Although sales increased 12 percent for the quarter, we were disappointed with overall volume and its impact on earnings,” commented Vince Byrd, President and Chief Operating Officer. “Despite having strong merchandising programs in place for the holiday period, our volume was lower than expected as a result of our higher price points coupled with lower consumer demand across the food industry. Looking forward, we are encouraged that our share of market remains strong and that commodity costs are moderating, providing opportunities to adjust pricing and promotional activities to better meet the needs of our consumers.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 18.4% to $1.51 billion in the second quarter. The figure rose 13.5% in the first quarter from the year earlier and climbed 11% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 15% from the year earlier quarter.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 10 cents with net income of $1.29 versus a mean estimate of net income of $1.39 per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.15 per share to $1.14, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $5.03 per share, down from $5.11 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com