Today’s Research Reports on Stocks to Watch: J.M. Smucker Company and Dollar Tree
NEW YORK, NY / ACCESSWIRE / August 25, 2017 / It was a disappointing day for the J.M. Smucker company after it not only missed in its first quarter earnings report but a Wells Fargo analyst proclaimed that things could get even worse for the company. Shares hit a new low as a result on Thursday. Shares of Virginia-based Dollar Tree soared higher after posting a beat in its second quarter earnings report and raising its outlook for the full year.
RDI Initiates Coverage on:
The J. M. Smucker Company
https://rdinvesting.com/news/?ticker=SJM
Dollar Tree, Inc.
https://rdinvesting.com/news/?ticker=DLTR
The J. M. Smucker Company shares fell to a new low on Thursday and closed down 9.54% for the day. The stock hit as low as $106.93 after the company missed on first quarter forecasts. For the period, the Ohio-based company reported a profit of $1.12. EPS after being adjusted for non-recurring costs were $1.51 per share. This trailed behind the $1.61 that Wall Street was waiting for. Revenue was also a miss at $1.75 billion compared to the $1.82 billion that analysts had been waiting for. The stock sank to the bottom of the S&P 500 after the results. According to John Baumgartner of Wells Fargo, it could get even worse for the company. He said, "Weak Start to the Year and Risk Exists: FQ1's results were disappointing given the scale of sales declines in Consumer (even missing Nielsen takeaway by -150bps) and the sharper than expected drop in Coffee profitability. Although the coffee cost position should improve through fiscal year-end, growth acceleration in Pet remains absent and a marketing reduction in Consumer is disappointing given volume pressure. Further, negative commentary on pricing is untimely given prevailing market concerns and the updated sales guidance implies approx. flattish yr/yr sales for the duration of FY18 despite comps which become harder. We think that risk of further downside to guidance will pressure SJM shares".
Access RDI’s The J. M. Smucker Company Research Report at:
https://rdinvesting.com/news/?ticker=SJM
Dollar Tree, Inc. shares closed up 5.62% on Thursday with nearly 13 million shares traded. Shares went flying after the discount retail store that sells items for $1.00, reported a strong second quarter earnings report. Dollar Tree reported net income of 98 cents per share. After being adjusted for asset impairment costs, EPS was 99 cents a share. This was ahead of the 87 cents that Wall Street had expected. Revenue was also a win with $5.28 billion reported next to the expectation of $5.23 billion. Looking ahead, Dollar Tree has raised its forecast full year earnings to $4.44 to $4.60 per share and revenue in the range of $22.07 billion to $22.28 billion. Analysts on average had been waiting for $4.45. While the company also reported that existing store sales saw an increase, they were shy of what analysts were looking for. Traders seemed happy anyway with the revenue beat and raised outlook.
Access RDI’s Dollar Tree, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=DLTR
Our Actionable Research on The J. M. Smucker Company (NYSE: SJM) and Dollar Tree, Inc. (NASDAQ: DLTR) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com
