The J.M. Smucker (SJM) Readies for Q3 Earnings: Things to Note
The J. M. Smucker Company SJM is likely to register a top-line increase when it reports third-quarter fiscal 2023 earnings on Feb 28. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,217 million, suggesting a rise of 7.8% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has decreased by a penny in the past seven days to $2.13 per share. This indicates a drop of 8.6% from the figure reported in the prior-year fiscal quarter.
This branded food and beverage product company has a trailing four-quarter earnings surprise of 18.5%, on average. SJM delivered an earnings surprise of 9.6% 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 battling commodity and ingredient, packaging, transportation and manufacturing cost inflation. In its second-quarter earnings release, management stated that the ongoing cost inflation, a volatile supply chain and a broader macroeconomic landscape continue to affect the company’s results and cause risks for fiscal 2023. However, SJM remains focused on actions like minimizing the impacts of cost inflation, product recall and other business hurdles.
The J.M. Smucker 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. The product recall impacted the company’s performance in the second quarter of fiscal 2023 and is likely to affect the fiscal 2023 top and bottom lines. These factors raise concerns for the quarter under review.
The J. M. Smucker is progressing well with core priorities, which include driving commercial excellence, reshaping the portfolio, streamlining the cost structure and unleashing its organization to win. Strength in such strategies is helping The J. M. Smucker navigate complex supply-chain challenges.
The company is committed to increasing its focus and resources to reshape the portfolio to achieve sustainable growth across pet food and pet snacks, coffee and snacking categories. Talking of the coffee business, the overall coffee portfolio looks encouraging as at-home coffee remains strong despite inflationary pressures, given consumers’ daily coffee habits. These upsides, together with efficient pricing, bode well.
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 #3 and an Earnings ESP of +1.97%. 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.
Burlington Stores BURL has an Earnings ESP of +0.08% and a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter fiscal 2022 earnings is pegged at $2.71, calling for a 7.5% rise from the year-ago period figure. BURL has a trailing four-quarter negative earnings surprise of 0.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Burlington’s top line is pegged at $2.6 billion, suggesting a dip of 0.4% from the prior-year quarter’s reported figure.
Vital Farms VITL currently has an Earnings ESP of +80.00% and a Zacks Rank of 3. The company is expected to register top-and-bottom-line growth when it reports fourth-quarter 2022 numbers. The Zacks Consensus Estimate for VITL’s quarterly revenues is pegged at $102.5 million, which suggests growth of 32.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Vital Farms’ quarterly earnings has moved up by a couple of cents in the past 30 days to 5 cents per share. The consensus estimate for VITL suggests 155.6% growth from a loss of 9 cents reported in the year-ago quarter. VITL delivered an earnings beat of 58.3%, on average, in the trailing four quarters.
Casey's General Stores CASY is likely to register top-line growth when it reports third-quarter fiscal 2023 results. CASY has an Earnings ESP of +14.04% and a Zacks Rank #3. The consensus mark for Casey's top line is pegged at $3.5 billion, calling for growth of 15.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Casey's bottom line has increased from $1.45 to $1.67 in the past 30 days, indicating a decline of 2.3% from the year-ago period figure. CASY has a trailing four-quarter earnings surprise of 7.2%, on average.
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The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
Vital Farms, Inc. (VITL) : Free Stock Analysis Report
