J. M. Smucker (SJM) Q2 Earnings Report Preview: What To Look For

Packaged foods company J.M Smucker (NYSE:SJM) will be announcing earnings results this Wednesday before market open. Here’s what to expect.

J. M. Smucker missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $2.14 billion, down 2.8% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations significantly and a miss of analysts’ organic revenue estimates.

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 be flat year on year at $2.12 billion, slowing from the 17.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.93 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 5 upward revisions over the last 30 days (we track 12 analysts). J. M. Smucker has missed Wall Street’s revenue estimates six 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. Hershey delivered year-on-year revenue growth of 26%, beating analysts’ expectations by 3.1%, and J&J Snack Foods reported revenues up 3.3%, topping estimates by 2%. Hershey’s stock price was unchanged after the resultswhile J&J Snack Foods was down 3.4%.

Read our full analysis of Hershey’s results here and J&J Snack Foods’s results here.

Investors in the shelf-stable food segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. J. M. Smucker is up 4.3% during the same time and is heading into earnings with an average analyst price target of $116 (compared to the current share price of $113.35).

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