Yahoo Finance The J.M. Smucker (SJM) Q2 Earnings Upcoming: Factors to Note
The J. M. Smucker Company SJM is likely to register a top-line increase from the year-ago fiscal quarter’s reading when it reports second-quarter fiscal 2023 earnings on Nov 21. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,161 million, suggesting growth of 5.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the second-quarter bottom line has risen by a penny in the past 30 days to $2.18 per share. However, this indicates a 10.3% decrease from the figure reported in the prior-year fiscal quarter.
This manufacturer and marketer of branded food and beverage products has a trailing four-quarter negative earnings surprise of 20.8%, on average. SJM delivered an earnings surprise of 33.6% in the last reported quarter.
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 positive net price realization, which was witnessed in the first quarter of fiscal 2023. Net sales growth was mainly backed by positive net price realization in most of the company’s segments during the quarter.
Management’s sales guidance for fiscal 2023 reflects the positive impact of elevated net pricing to counter cost inflation in many categories. The J. M. Smucker is also benefiting from the revival of the Away from Home division. Management’s sales guidance for fiscal 2023 includes the expectation of sustained momentum in the away-from-home channel. These aspects bode well for the quarter under review.
A focus on core priorities is also working well for The J. M. Smucker. These include driving commercial excellence, reshaping the portfolio, streamlining the cost structure and unleashing its organization to win. Strength in such strategies helps The J. M. Smucker navigate complex supply-chain challenges.
The company’s overall coffee portfolio looks encouraging as at-home coffee habits created during the pandemic and at-home consumption remain high. In the first quarter, net sales for Coffee grew 10%, backed by all brands in the company’s market-leading at-home coffee portfolio.
Moreover, SJM’s Folgers, Dunkin and Cafe Bustelo brands are doing particularly well, with K-Cup sustaining its solid momentum. These upsides are likely to have aided The J. M. Smucker in the quarter under review.
The J. M. Smucker is encountering cost inflation and supply-chain and transportation challenges. Further, the company recently initiated a voluntary recall of certain Jif peanut butter products made at its Lexington, KY facility and sold mainly in the United States. The move was a result of potential salmonella contamination.
Management’s EPS guidance for fiscal 2023 includes the expected impact of inflated costs, an expected volume/mix effect of the price elasticity of demand, an adverse impact of the product recall and elevated SD&A expenses. These factors raise concerns for the upcoming quarter.
What the Zacks Model Unveils
Our proven model predicts 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 odds of an earnings beat, which is the case here.
The J. M. Smucker has a Zacks Rank #2 and an Earnings ESP of +0.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering as our model shows that these also have the right combination of elements to beat earnings this season.
Dollar General DG currently has an Earnings ESP of +1.47% and a Zacks Rank #2. The company is expected to register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly EPS of $2.55 suggests a jump of 22.6% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General’s top line is anticipated to have increased year over year. The consensus mark for DG’s revenues is pegged at $9.43 billion, indicating an increase of 10.7% from the figure reported in the year-ago quarter. Dollar General has a trailing four-quarter earnings surprise of 2.2%, on average.
Campbell Soup Company CPB currently has an Earnings ESP of +1.19% and a Zacks Rank #3. The company is expected to register a decrease in the bottom line when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a dip of 5.6% from the year-ago quarter.
Campbell Soup’s top line is anticipated to have increased year over year. The consensus mark for CPB’s revenues is pegged at $2.42 billion, indicating an increase of 8.1% from the figure reported in the year-ago quarter. Campbell Soup has a trailing four-quarter earnings surprise of 6.5%, on average.
Dollar Tree DLTR has an Earnings ESP of +6.31% and a Zacks Rank of 3 at present. DLTR is likely to register top-line growth from the year-ago fiscal quarter’s reported number when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.84 billion, suggesting 6.6% growth from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for Dollar Tree’s earnings for the fiscal third quarter is pegged at $1.17 per share, suggesting 21.8% growth from the year-ago fiscal quarter’s tally. DLTR delivered an earnings surprise of 8.6%, on average, in the trailing four quarters.
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