On Thursday, J.M. Smucker Company (NYSE:SJM), known for its food and beverage products, received a reiterated Buy rating and a steady price target of $137.00 from a leading financial firm. The company's fourth-quarter earnings per share (EPS) of $2.66 surpassed the consensus estimate of $2.32, with all five legacy reporting segments contributing to the profit upside, except Hostess, which fell short of expectations.
The company has projected its fiscal year 2025 EPS to be between $9.80 and $10.20. This forecast's midpoint is $10.00, slightly below the expected consensus of $10.19, indicating less than 1% growth compared to fiscal year 2024's EPS of $9.94. Additionally, for the first quarter of fiscal year 2025, J.M. Smucker anticipates a low-single digit EPS decline, contrasting with the general expectation of a roughly flat year-over-year performance.
Looking ahead to fiscal year 2026, the company anticipates EPS growth to exceed its long-term target of high-single digits, hinting at a midpoint of over $11.00, which is above the current consensus of $10.83. These projections are based on preliminary discussions before the company's earnings call scheduled for 9 AM ET, suggesting that the actual buy-side expectations for fiscal year 2025 may have been significantly lower than the consensus estimate.
The financial firm's analysis indicates that the combination of the earnings beat and future outlook could potentially be seen as neutral or even slightly positive for J.M. Smucker's stock. The company's performance demonstrates resilience across its diverse portfolio, despite one segment not meeting the anticipated figures. As the market reacts to the earnings call and the detailed financial guidance, investors will be closely monitoring the impact on the company's share performance.
In other recent news, J.M. Smucker exceeded expectations with a fourth-quarter earnings per share (EPS) of $2.66, marking a 1% year-over-year growth. Despite this, the company's revenue fell slightly short at $2.21 billion. The company has also introduced fiscal year 2025 guidance, forecasting comparable sales growth between 1.5% to 2.5%, and an EPS projection between $9.80 and $10.20. This could indicate a decrease of up to 1.5% or an increase of up to 2.5% compared to the previous year.
Stifel, Citi, Jefferies, and Deutsche Bank (ETR:DBKGn) have all recently provided their analysis and ratings for the company. Stifel maintains a Buy rating with a target price of $135. Jefferies reduced its price target to $121 and maintained a Hold rating, and Deutsche Bank continued its Hold rating with a steady price target of $129.
Lastly, J.M. Smucker declared a dividend of $1.06 per share and scheduled its Annual Meeting of Shareholders for August 14, 2024. These are the latest updates from the company, reflecting its ongoing financial activities and shareholder engagement.
InvestingPro Insights
The J.M. Smucker Company's (NYSE:SJM) recent earnings beat and forward-looking EPS projections offer investors a multifaceted view of the company's financial health. To provide additional context, InvestingPro data reveals a market capitalization of $11.71 billion and an adjusted P/E ratio for the last twelve months as of Q3 2024 at 14.95, suggesting a reasonable valuation in light of future earnings expectations. Notably, the company's dividend yield stands at an attractive 3.84%, with a dividend growth of 3.92% in the same period, highlighting its commitment to returning value to shareholders.
Two InvestingPro Tips that stand out for J.M. Smucker are the aggressive share buyback management has undertaken and the impressive track record of raising its dividend for 14 consecutive years. These actions reflect a confident outlook by management in the company's financial stability and future performance. Additionally, while analysts have revised earnings downwards for the upcoming period, they predict the company will be profitable this year, aligning with the company's own EPS growth projections for fiscal year 2026.
For investors seeking a deeper dive into J.M. Smucker's financials and strategic moves, InvestingPro offers additional tips that can further inform investment decisions. With a special offer for our readers, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Discover more InvestingPro Tips for J.M. Smucker at https://www.investing.com/pro/SJM, including insights on the company's performance and analyst predictions.
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