J. M. Smucker (SJM) To Report Earnings Tomorrow: Here Is What To Expect

Packaged foods company J.M Smucker (NYSE:SJM) will be reporting results tomorrow before the bell. Here’s what to look for.

J. M. Smucker missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $2.21 billion, down 1.3% year on year. It was a decent quarter for the company, with an impressive beat of analysts’ gross margin estimates but underwhelming earnings guidance for the full year.

Is J. M. Smucker a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting J. M. Smucker’s revenue to grow 18.2% year on year to $2.13 billion, a reversal from the 3.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.17 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. J. M. Smucker has missed Wall Street’s revenue estimates four times over the last two years.

Looking at J. M. Smucker’s peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. BellRing Brands delivered year-on-year revenue growth of 15.6%, beating analysts’ expectations by 2%, and SunOpta reported revenues up 21.1%, topping estimates by 6.9%. BellRing Brands traded up 6.7% following the results while SunOpta was also up 13%.

Read our full analysis of BellRing Brands’s results here and SunOpta’s results here.

There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 2.7% on average over the last month. J. M. Smucker is up 2.5% during the same time and is heading into earnings with an average analyst price target of $127.5 (compared to the current share price of $121).

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