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Earnings Review and Free Research Report: J. M. Smucker Reports Better than Expected Results

Research Desk Line-up: Coffee Holding Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 28, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The J.M. Smucker Co. (NYSE: SJM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SJM, following the Company's release of its first quarter fiscal 2018, ended April 30, 2017, earnings results on June 08, 2017. The consumer and pet foods seller reported a y-o-y decline in sales and earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at: http://protraderdaily.com/register/.

Get more of our free earnings reports coverage from other constituents of the Processed & Packaged Goods industry. Pro-TD has currently selected Coffee Holding Co., Inc. (NASDAQ: JVA) for due-diligence and potential coverage as the Company announced on June 13, 2017, its operating results for the three and six months which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Coffee Holding when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SJM; also brushing on JVA. With the links below you can directly download the report of your stock of interest free of charge at:



Earnings Reviewed

J. M. Smucker reported that for the quarter ended April 30, 2017, revenue declined 1% to $1.78 billion from $1.81 billion in Q4 FY16, driven by better-than-expected US retail coffee and consumer foods sales offset a miss in pet foods sales. The Company's revenue topped analysts' expectations of $1.77 billion,

For Q4 FY17, J. M. Smucker's gross profit decreased 6% to $646.8 million, driven by an unfavorable change in derivative gains and losses. Lower volume/mix also contributed to the gross profit decline. On a non-GAAP basis, the Company's adjusted gross profit decreased 2%, with the primary difference from GAAP results being the exclusion of a $30.8 million unfavorable change in unallocated derivative gains and losses.

The Company's selling, distribution, and administrative ("SD&A") expenses fell 5% to $334.4 million, primarily driven by incremental synergy realization. For Q4 FY17, J. M. Smucker's operating income reduced by $49.4 million on a y-o-y basis to $196.7 million, reflecting a $57.5 million non-cash impairment charge, primarily related to certain indefinite-lived trademarks within the US Retail Pet Foods segment, and a $33.0 million reduction in special project costs. The Company's adjusted operating income increased 2% on a y-o-y basis.

J.M. Smucker's net income per diluted share was $0.96 in Q4 FY17 including a non-cash impairment charge primarily related to certain indefinite-lived trademarks within the US Retail Pet Foods segment compared to $1.61 in the prior year. The Company's adjusted earnings per share was $1.80 in the reported quarter compared to $2.23 in the prior year's same quarter and ahead of Wall Street's expectations for earnings of $1.72 per share

For FY17, the Company's net income per diluted share was $5.10. For the full year, adjusted earnings per share were $7.72 compared to $7.79 in the prior year.

Segment Results

During Q4 FY17, J. M. Smucker's US Retail Coffee segment's net sales decreased $6.7 million on a y-o-y basis to $505.9 million. The segment's volume/mix reduced net sales by 5% driven by declines for the Folgers® brand, partially offset by gains for the Café Bustelo® and Dunkin' Donuts® brands. The lower volume/mix was mostly offset by higher net price realization. The segment's profit decreased $23.9 million to $149.9 million due to the impact of volume/mix.

For the reported quarter, the Company's US Retail Consumer Foods' segment's net sales increased $0.1 million to $473.8 million. Higher net price realization primarily driven by the Smucker's® and Jif® brands, contributed 2% of growth. This was offset by lower volume/mix, primarily attributed to the Crisco® and truRoots® brands. The segment's profit increased $17.0 million to $108.7 million, reflecting higher net pricing and lower manufacturing overhead costs, as well as incremental synergy realization. These factors were partially offset by an increase in marketing expense.

During Q4 FY17, US Retail Pet Foods' net sales decreased $28.4 million to $534.5 million, primarily due to lower net price realization which reduced net sales by 4%. Volume/mix reduced net sales by 1% as gains for Nature's Recipe® and Milk-Bone® brands were more than offset by declines across the rest of the portfolio, most notably 9Lives® and Meow Mix® cat food. The segment's profit had decreased $20.1 million to $118.0 million as the decline in net sales and increased distribution expense was partially offset by lower input costs.


For FY18, J.M. Smucker is forecasting net sales to increase approximately 1% from fiscal 2017, primarily reflecting higher net price realization. The Company expects adjusted earnings per share is expected to range from $7.85 to $8.05, based on 113.6 million shares outstanding, thus reflecting the Company's repurchase of 3.0 million shares in Q4 FY17.

Stock Performance

On Tuesday, June 27, 2017, J.M. Smuckers stock closed the trading session at $120.17, falling 1.55% from its previous closing price of $122.06. A total volume of 880.98 thousand shares were exchanged during the session. Shares of the Company have a PE ratio of 23.58 and have a dividend yield of 2.50%. The stock currently has a market cap of $13.67 billion.

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