Smucker Drops on Earnings Miss

This morning, JM Smucker (SJM) reported fiscal Q4 earnings (after a few adjustments) of $1.93 per share which was well below the company’s own guidance of $2.17 to $2.27 per share. The CEO blamed the miss on “industrywide headwinds and certain discrete items.”

The company also had disappointing guidance for the coming year. Smucker sees this year’s earnings coming in between $8.40 and $8.65 per share. Wall Street had been expecting $9.18 per share.

The WSJ reports:

J.M. Smucker is among several companies trying to figure out what consumers want in their kitchens. Other food companies like Kraft Heinz Co. and Campbell Soup Co. have struggled with sales in recent times as customers’ food choices change.

At the same time, J.M. Smucker has been working to change its business mix.

In April, the company said it was looking at options for its baking business, such as selling it. That business includes the Pillsbury brand. That same day, the company said it had agreed to buy Ainsworth Pet Nutrition LLC, a deal J.M. Smucker said it valued at $1.7 billion.

The company also launched a higher-end version of its Folgers brand in April. Mr. Smucker had said the company was “trying to strike the right balance between leading, iconic brands and emerging brands.”

Posted by on June 7th, 2018 at 12:08 pm


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