The J. M. Smucker Earnings: Here’s Why Investors are Ambivalent Now

The J. M. Smucker Company (NYSE:SJM) delivered a profit and beat Wall Street’s expectations, AND met the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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The J. M. Smucker Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.27% to $1.29 in the quarter versus EPS of $1.10 in the year-earlier quarter.

Revenue: Decreased 1.13% to $1.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The J. M. Smucker Company reported adjusted EPS income of $1.29 per share. By that measure, the company beat the mean analyst estimate of $1.15. It met the average revenue estimate of $1.34 billion.

Quoting Management: “Our momentum continued through a strong fourth quarter, as we achieved record sales, earnings, and operating cash flow for the full fiscal year,” commented Richard Smucker, Chief Executive Officer. “The record results we reported were achieved while also making significant investments toward our future growth and creating value for shareholders. In 2013, we increased the annual dividend paid per share by nine percent, while also repurchasing nearly four percent of our shares. Our long-term focus, strong consumer-relevant brands, robust innovation, and dedicated employees are keys to this success.”

Key Stats (on next page)…

Revenue decreased 14.08% from $1.56 billion in the previous quarter. EPS decreased 12.24% from $1.47 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.26 to a profit $1.25. For the current year, the average estimate is a profit of $5.24, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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