Based in Orrville, Ohio, The J. M. Smucker Company (SJM) is a leading North American marketer and manufacturer of consumer food and beverage products, as well as pet food and snacks. Valued at $12.3 billion by market cap, the company offers a strong portfolio of well-known brands in categories such as coffee (Folgers, Dunkin' Donuts), pet food (Meow Mix, Milk-Bone), and various other food products (Jif, Crisco, Pillsbury). It is expected to announce its fiscal second-quarter earnings for 2025 on Tuesday, Dec. 3.
Ahead of the event, analysts expect SJM to report a profit of $2.48 per share on a diluted basis, down 4.3% from $2.59 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. Its EPS of $2.44 in the recent quarter surpassed the consensus estimate by 11.9%.
For fiscal 2025, analysts expect SJM to report an EPS of $9.81, down 1.3% from $9.94 in fiscal 2023.
SJM stock has soared 1.3% over the past year, significantly underperforming the S&P 500’s ($SPX) 38.7% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 19.3% gains over the same time frame.
The dynamic consumer landscape and a rise in green coffee costs have weighed on SJM’s stock performance over the past year.
On Oct. 22, SJM announced a definitive agreement to sell its Voortman® cookie brand to Second Nature Brands for approximately $305 million in cash, subject to a working capital adjustment. While this decision underscores the company's commitment to optimizing its portfolio and reallocating resources to its core growth brands, the market reacted poorly, sending the stock down 1.9%.
Analysts’ consensus opinion on SJM stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 14 analysts covering the stock, four advise a “Strong Buy” rating, nine recommend a “Hold,” and the remaining analyst appoints it a “Strong Sell.” This consensus is slightly less bullish than a month ago when five analysts suggested a “Strong Buy” rating.
The average analyst price target for SJM is $125.28, indicating a 7.9% potential upside from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
