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Friday, March 29, 2024
HomePet Industry NewsPet Financial NewsFactors to Watch Ahead of The J.M. Smucker's (SJM) Q4 Earnings

Factors to Watch Ahead of The J.M. Smucker’s (SJM) Q4 Earnings

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The J. M. Smucker Company SJM is likely to register top-and-bottom-line growth when it reports fourth-quarter fiscal 2023 earnings on Jun 6. The Zacks Consensus Estimate for revenues is pegged at $2,187 million, suggesting a rise of 7.5% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at $2.42 per share. The projection indicates growth of 8.5% from the figure reported in the year-ago period quarter. The J. M. Smucker has a trailing four-quarter earnings surprise of 16.4%, on average.

For fiscal 2023, the Zacks Consensus Estimate for revenues is pegged at $8.5 billion, indicating 6% growth. The consensus mark for the bottom line of $8.68 suggests a decline of 2.3% from the year-ago period’s reported figure.

The J. M. Smucker Company Price, Consensus and EPS Surprise

The J. M. Smucker Company Price, Consensus and EPS Surprise

The J. M. Smucker Company Price, Consensus and EPS Surprise

The J. M. Smucker Company price-consensus-eps-surprise-chart | The J. M. Smucker Company Quote

Factors to Consider

The J. M. Smucker has been benefiting from its focus on core priorities, which include driving commercial excellence, reshaping the portfolio, streamlining the cost structure and unleashing its organization to win. Strength in such strategies is helping The J. M. Smucker navigate complex supply-chain challenges. These are also helping SJM improve in-store fundamentals and stock performance for the brands.

The company is implementing inflation-justified pricing actions across all businesses. The J. M. Smucker is committed to increasing its focus and resources to reshape the portfolio to achieve sustainable growth across pet food and pet snacks, coffee and snacking categories.

The J. M. Smucker has been benefiting from positive net price realization. In the third quarter, net sales growth was mainly backed by positive net price realization in the company segments. Management’s updated sales guidance for fiscal 2023 reflects the positive impacts of elevated net pricing to counter cost inflation in many categories. These upsides also bode well for the fourth quarter.

For some time now, The J. M. Smucker has been dealing with rising costs and the cost of goods sold. In its third-quarter earnings release, management stated that the ongoing cost inflation, a volatile supply chain and a broader macroeconomic landscape continue to affect the company’s results and cause risks for fiscal 2023.

For fiscal 2023, SJM anticipates net sales to have risen 6%. Excluding non-comparable sales related to the private-label dry pet food and natural beverage and grain businesses’ divestitures, net sales are anticipated to have improved nearly 8%. The adjusted EPS for fiscal 2023 is envisioned in the $8.55-$8.75 band.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for The J. M. Smucker this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

The J. M. Smucker has an Earnings ESP of -0.24% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Campbell Soup CPB currently has an Earnings ESP of +0.58% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Campbell Soup’s quarterly revenues is pegged at $2.2 billion, which implies a rise of 4.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the quarterly EPS is pegged at 65 cents, which indicates a 7.1% decline from the year-ago period figure. CPB has a trailing four-quarter earnings surprise of 10.7%, on average.

The Boston Beer Company SAM currently has an Earnings ESP of +8.52% and a Zacks Rank of 3. SAM is expected to register a top-and-bottom-line decline when it reports second-quarter fiscal 2023 numbers.

The Zacks Consensus Estimate for Boston Beer’s quarterly revenues is pegged at $595.2 million, calling for a decline of 3.4% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $3.29 suggests a drop of 23.8% from the figure reported in the year-ago fiscal quarter. SAM has a trailing four-quarter negative earnings surprise of 88.7%, on average.

Constellation Brands STZ currently has an Earnings ESP of +7.57% and a Zacks Rank of 3. STZ is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, suggesting growth of 4.1% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for Constellation Brands’ quarterly earnings has remained the same at $2.82 per share in the past 30 days. The consensus estimate indicates growth of 6% from the figure reported in the prior-year quarter. STZ has a trailing four-quarter earnings surprise of nearly 5.2%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Campbell Soup Company (CPB) : Free Stock Analysis Report

The J. M. Smucker Company (SJM) : Free Stock Analysis Report

Constellation Brands Inc (STZ) : Free Stock Analysis Report

The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report

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