HomeMost PopularInvestingJ.M. Smucker Co's Q2 Earnings: A Storm Cloud on the Horizon?

J.M. Smucker Co’s Q2 Earnings: A Storm Cloud on the Horizon?

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The J. M. Smucker Company SJM is likely to report a decrease in revenues for its second-quarter fiscal 2024 earnings on Dec 5. The Zacks Consensus Estimate for revenues is pegged at $1.96 billion, suggesting an 11.3% decline from the prior-year quarter.

The consensus mark for quarterly earnings has declined by a penny in the past 30 days to $2.46 per share. This indicates a 2.5% rise from the year-ago quarter’s reported figure. SJM has a trailing four-quarter earnings surprise of 7.3%, on average.

The Silver Lining

The J. M. Smucker has been making strategic moves to navigate through supply-chain challenges and improve in-store fundamentals for its brands. The company’s focus on commercial excellence, portfolio shaping, and cost structure streamlining has shown promise. It has also implemented pricing actions and reshaped its portfolio to drive growth across pet food, pet snacks, coffee, and snacking categories.

The acquisition of Hostess Brands is expected to have a positive impact on the company’s second-quarter top line, offsetting the impact from the divestiture of certain pet food brands in the previous quarter.

The J. M. Smucker’s bottom-line view for fiscal 2024 assumes elevated expenses. It anticipates higher costs associated with capacity expansion, marketing, and increased investments in coffee.

Zacks’ Perspective

According to Zacks’ model, the combination of a positive Earnings ESP and a favorable Zacks Rank increases the odds of an earnings beat. However, The J. M. Smucker carries a Zacks Rank #3 and has an Earnings ESP of -2.34%, indicating that it may not beat earnings this time.

Bright Spots Elsewhere

Companies like Campbell Soup, Costco Wholesale, and lululemon athletica are showing favorable signs, making them potential candidates for beating earnings this quarter, as per Zacks’ model.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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