J. M. Smucker (NYSE:SJM) Issues Quarterly Earnings Results

J. M. Smucker (NYSE:SJM) announced its quarterly earnings data on Wednesday. The company reported $3.24 earnings per share for the quarter, topping the consensus estimate of $2.22 by $1.02, FiscalAI reports. The firm had revenue of $2.22 billion during the quarter, compared to analysts’ expectations of $2.13 billion. J. M. Smucker had a return on equity of 19.85% and a net margin of 2.51%.The company’s quarterly revenue was up 5.0% compared to the same quarter last year. During the same period in the previous year, the business posted $1.90 EPS. J. M. Smucker updated its FY 2027 guidance to 10.500-11.000 EPS.

Here are the key takeaways from J. M. Smucker’s conference call:

• Uncrustables momentum accelerated: The company raised its fiscal 2027 growth outlook for the brand from mid-single-digit to high-single-digit growth, supported by stronger U.S. retail and away-from-home demand, fridge-friendly products, innovation, and distribution gains. Management is advancing production at its McCalla, Alabama facility to support demand.
• Coffee pricing and volume assumptions remain cautious: Despite strong first-quarter coffee volume and growth across Folgers, Dunkin’ and Café Bustelo, management paused a planned list-price reduction because commodity deflation has not been sustained, while using promotions to pass some savings to consumers. The company continues to forecast low-single-digit coffee volume declines for the full year amid commodity volatility and consumer uncertainty.
• Capital flexibility improved: A tariff-refund benefit contributed $0.84 per share in the first quarter, with part of the benefit being reinvested in marketing, administrative resources and McCalla pre-production costs while the remainder supports debt reduction. Management said it achieved its 3x leverage target ahead of expectations and can now contemplate share repurchases while maintaining its increased dividend.
• Input-cost pressure is higher than initially expected: Underlying cost inflation remains in the mid-single digits, with freight, commodities and other ingredients driving an increase versus the original outlook. These costs are incorporated into guidance but remain a potential downside risk.
• Hostess remains on a gradual stabilization path: Sweet baked snacks performed in line with expectations, but the business is expected to decline by low single digits for the full year, with larger declines in the first half from prior SKU rationalization and persistent convenience-store traffic weakness. Donettes and Suzy Q’s were bright spots, while Jerky Treats declined.

J. M. Smucker Price Performance

Shares of SJM opened at $131.92 on Friday. The company has a market cap of $14.07 billion, a price-to-earnings ratio of 61.64, a PEG ratio of 1.75 and a beta of 0.25. J. M. Smucker has a 1-year low of $88.25 and a 1-year high of $135.89. The company’s fifty day simple moving average is $117.28 and its 200 day simple moving average is $107.97. The company has a current ratio of 0.87, a quick ratio of 0.33 and a debt-to-equity ratio of 1.11.

J. M. Smucker Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th will be given a dividend of $1.12 per share. This is a positive change from J. M. Smucker’s previous quarterly dividend of $1.10. The ex-dividend date of this dividend is Friday, August 14th. This represents a $4.48 annualized dividend and a dividend yield of 3.4%. J. M. Smucker’s payout ratio is presently -344.62%.

Key J. M. Smucker News

Here are the key news stories impacting J. M. Smucker this week:

• Positive Sentiment: Quarterly results exceeded expectations. Adjusted EPS was $3.24 versus the $2.22 analyst consensus, while sales rose 5% year over year to approximately $2.22 billion, ahead of the $2.13 billion estimate. J.M. Smucker fiscal 2027 first-quarter results
• Positive Sentiment: Coffee and key brands drove momentum. U.S. Retail Coffee sales increased 13% to $807.8 million, helped by higher pricing and steady demand. Frozen handheld and spreads sales, including Uncrustables, rose 3%. J.M. Smucker forecasts smaller sales decline
• Positive Sentiment: Management raised its fiscal 2027 outlook. The company now expects sales to decline only 1% to 2%, compared with its previous 3% to 4% forecast. Adjusted EPS guidance increased to $10.50-$11.00, above the roughly $10.03 consensus, and projected free cash flow rose to about $1.1 billion. J.M. Smucker lifts fiscal 2027 outlook
• Positive Sentiment: Analysts increased their expectations. TD Cowen raised its price target from $123 to $136 while maintaining a Hold rating. Other analysts also lifted targets following the earnings beat, supporting the view that Smucker’s turnaround is progressing.
• Neutral Sentiment: The quarter benefited from approximately $115 million in tariff refunds, so investors may question how much of the 71% adjusted-EPS growth is repeatable. However, operating cash flow and free cash flow also improved substantially.
• Negative Sentiment: Coffee affordability remains a risk. Smucker has not reduced coffee prices and is relying on promotions instead, which could pressure margins or demand if elevated prices persist. The stock is also approaching technical resistance near its 52-week high, potentially limiting near-term upside.

Analyst Ratings Changes

A number of analysts recently weighed in on SJM shares. Jefferies Financial Group increased their price target on shares of J. M. Smucker from $129.00 to $140.00 and gave the company a “buy” rating in a research report on Wednesday, August 19th. JPMorgan Chase & Co. upped their target price on shares of J. M. Smucker from $125.00 to $139.00 and gave the company an “overweight” rating in a research note on Friday, August 14th. Weiss Ratings upgraded shares of J. M. Smucker from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday. Sanford C. Bernstein lifted their price target on shares of J. M. Smucker from $137.00 to $157.00 and gave the stock an “outperform” rating in a research report on Thursday. Finally, Royal Bank Of Canada boosted their price target on shares of J. M. Smucker from $135.00 to $150.00 and gave the company an “outperform” rating in a report on Tuesday. Ten analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $136.25.

Insider Activity

In other news, CFO Tucker H. Marshall sold 3,630 shares of the stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $111.05, for a total value of $403,111.50. Following the transaction, the chief financial officer directly owned 38,699 shares of the company’s stock, valued at $4,297,523.95. This represents a 8.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jeannette L. Knudsen sold 4,353 shares of the stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $115.08, for a total transaction of $500,943.24. Following the completion of the transaction, the insider directly owned 16,835 shares in the company, valued at approximately $1,937,371.80. This represents a 20.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 18,533 shares of company stock valued at $2,132,914. 2.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On J. M. Smucker

Several institutional investors and hedge funds have recently made changes to their positions in the company. Two Sigma Investments LP lifted its holdings in J. M. Smucker by 6,854.4% during the 3rd quarter. Two Sigma Investments LP now owns 1,527,962 shares of the company’s stock worth $165,937,000 after purchasing an additional 1,505,991 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in J. M. Smucker by 33.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,392,300 shares of the company’s stock valued at $331,807,000 after purchasing an additional 850,943 shares during the period. AQR Capital Management LLC grew its holdings in J. M. Smucker by 339.1% in the 3rd quarter. AQR Capital Management LLC now owns 1,029,222 shares of the company’s stock valued at $111,156,000 after buying an additional 794,851 shares in the last quarter. NewEdge Advisors LLC grew its holdings in J. M. Smucker by 10,549.5% in the 4th quarter. NewEdge Advisors LLC now owns 533,434 shares of the company’s stock valued at $52,175,000 after buying an additional 528,425 shares in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC bought a new position in J. M. Smucker during the 3rd quarter worth $55,736,000. Institutional investors and hedge funds own 81.66% of the company’s stock.

About J. M. Smucker

The J. M. Smucker Company is a diversified food and beverage manufacturer and marketer known for a portfolio of well-established consumer brands. The company’s main business activities include the production and distribution of fruit spreads, peanut butter, coffee and coffee filters, as well as pet food and pet snacks. Smucker’s core product lines serve both retail and foodservice customers through grocery chains, mass merchandisers, club stores, convenience outlets and e-commerce channels.

Among its leading brands are Smucker’s® fruit spreads, Jif® peanut butter, Folgers® and Dunkin’® coffees, and Café Bustelo® coffee.