Core Viewpoint - Smucker (SJM) is expected to report a quarterly earnings per share (EPS) of $2.32, reflecting a 12.1% decline year-over-year, while revenues are forecasted to increase by 0.5% to $2.25 billion [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 0.6%, indicating a collective reassessment by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between these revisions and short-term stock price performance [3]. Key Metrics Projections - Analysts estimate 'Net Sales- U.S. Retail Coffee' at $671.04 million, a year-over-year decline of 3.1% [5]. - 'Net Sales- U.S. Retail Pet Foods' is projected to be $493.83 million, reflecting a significant year-over-year decrease of 37.1% [5]. - 'Net Sales- International and Away From Home' is expected to reach $301.09 million, indicating a slight decline of 0.8% from the previous year [5]. - 'Net Sales- U.S. Retail Consumer Foods' is estimated at $450.15 million, showing a year-over-year change of -0.7% [6]. Segment Profit Estimates - 'Segment Profit- U.S. Retail Coffee' is projected at $195.96 million, down from $200.10 million in the same quarter last year [6]. - 'Segment Profit- U.S. Retail Pet Foods' is expected to be $121.96 million, compared to $145.50 million a year ago [7]. - 'Segment Profit- International and Away From Home' is estimated at $49.44 million, slightly up from $47.60 million reported in the same quarter last year [7]. - 'Segment Profit- U.S. Retail Consumer Foods' is projected to be $90.74 million, down from $103.40 million in the same quarter last year [8]. Stock Performance - Shares of Smucker have decreased by 1.3% over the past month, contrasting with a 5.1% increase in the Zacks S&P 500 composite [8].

This food maker is expected to post quarterly earnings of $2.32 per share in its upcoming report, which represents a year-over-year change of -12.1%. Revenues are expected to be $2.25 billion, up 0.5% from the year-ago quarter. Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. For Smucker, the consensus EPS estimate for ...

The market expects Smucker (SJM) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended April 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Ju ...

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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Smucker (SJM) , which belongs to the Zacks Food - Miscellaneous industry. This food maker has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 7.05%. For the most recent quarter, Smucker was expected to post earnings of $2.27 per share, ...

The J. M. Smucker Company (SJM) is well-positioned to sustain its growth trajectory. The company's diverse brand portfolio, effective pricing strategies and operational efficiencies have been working well. Sustained demand across brands and categories also keeps this food and beverage product company in good shape. Core Strategies Aid For fiscal 2024, the company anticipates comparable net sales to rise 8.75% on elevated net pricing and a favorable volume/mix. Fourth-quarter comparable sales are expected to ...

Financial Performance - In Q3 2024, net sales were $2,229.2 million, a 1% increase from $2,216.3 million in Q3 2023, while net sales for the nine months ended January 31, 2024, were $5,973.0 million, a 5% decrease from $6,294.4 million in the prior year[158]. - Gross profit for Q3 2024 was $823.1 million, representing a 9% increase from $755.8 million in Q3 2023, while gross profit for the nine months ended January 31, 2024, was $2,202.1 million, a 10% increase from $2,009.4 million[158]. - Operating income for Q3 2024 was $297.4 million, a 6% decrease from $317.9 million in Q3 2023, while operating income for the nine months ended January 31, 2024, was $899.8 million, a 14% increase from $791.0 million[158]. - Net income for Q3 2024 was $120.4 million, a 42% decrease from $208.5 million in Q3 2023, while net income for the nine months ended January 31, 2024, was $498.9 million, a 2% decrease from $509.4 million[158]. - Adjusted operating income increased by $167.4 million, or 17%, compared to the prior year, reflecting the exclusion of special project costs and amortization expense[171]. - Adjusted earnings per share for the nine months ended January 31, 2024, was $7.27, compared to $6.28 for the same period in 2023, reflecting a 15.7% increase[228]. Acquisitions and Divestitures - The acquisition of Hostess Brands was completed for a total consideration of $5.4 billion, expected to contribute approximately $650.0 million in net sales in 2024, with anticipated cost synergies of $100.0 million by the end of 2026[148]. - The divestiture of the Canada condiment business generated net proceeds of $25.3 million, with the brands having generated net sales of approximately $60.0 million in 2023[147]. - The Sahale Snacks business was sold for final net proceeds of $31.6 million, with net sales of approximately $48.0 million generated in 2023[150]. - The sale of certain pet food brands resulted in net proceeds of $1.2 billion, with these brands generating net sales of $1.5 billion in 2023[151]. - Integration costs related to the Hostess Brands acquisition are anticipated to be approximately $210.0 million, with over half expected to be recognized in 2024[175]. - The company expects to incur an estimated $60.0 million in additional capital expenditures related to the acquisition of Hostess Brands for the second half of 2024[219]. Sales Performance by Segment - The U.S. Retail Frozen Handheld and Spreads segment net sales increased by $10.4 million, or 2%, excluding the impact of divestitures, with higher net price realization contributing 5 percentage points[185]. - The U.S. Retail Pet Foods segment net sales decreased by 39% in the third quarter of 2024, reflecting a significant decline in sales volume[182]. - U.S. Retail Frozen Handheld and Spreads segment net sales increased by $195.4 million, or 17%, in the first nine months of 2024, excluding the impact of divested Sahale Snacks business[186]. - U.S. Retail Pet Foods segment net sales decreased by $882.6 million in the first nine months of 2024, but increased by $235.4 million, or 21%, when excluding the impact of divested brands[189]. - Sweet Baked Snacks segment contributed net sales of $300.3 million and segment profit of $68.0 million in the third quarter of 2024, following the acquisition of Hostess Brands[190]. - International and Away From Home net sales increased by $111.3 million, or 14%, in the first nine months of 2024, excluding the impact of divestitures and foreign currency exchange[192]. Cash Flow and Debt - Cash provided by operating activities increased by $50.7 million to $801.3 million in the first nine months of 2024 compared to $750.6 million in the prior year[194]. - Cash used for investing activities totaled $3.9 billion in the first nine months of 2024, primarily for the acquisition of Hostess Brands[196]. - Cash provided by financing activities included proceeds from long-term debt of $4.3 billion to partially finance the acquisition of Hostess Brands[197]. - Total debt increased to $8,539.1 million as of January 31, 2024, compared to $4,314.2 million on April 30, 2023[209]. - The company entered into a $800.0 million Term Loan in September 2023, with an interest rate of 6.69% as of January 31, 2024[209]. - The company completed a $3.5 billion Senior Notes offering in October 2023 to partially finance the acquisition of Hostess Brands[211]. Tax and Interest Expenses - Net interest expense increased by $61.9 million in the third quarter of 2024, primarily due to new Senior Notes and Term Loan issued to finance the Hostess Brands acquisition[172]. - Income taxes increased by $24.4 million, or 15%, in the first nine months of 2024, primarily due to a higher effective income tax rate of 27.0% compared to 23.9% in the prior year[173]. Market Conditions and Risks - The company anticipates continued inflationary pressures and elevated price elasticity of demand throughout 2024, impacting overall business performance[155]. - Supply chain disruptions and inflation remain uncertain, with potential adverse impacts on results of operations during the remainder of 2024[157]. - The company anticipates that the acquisition of Hostess Brands will provide synergies and cost savings, although realization of these benefits is uncertain[245]. Other Financial Information - The company recognized total direct costs of approximately $120.0 million related to the Jif peanut butter product recall, net of insurance recoveries[203]. - As of January 31, 2024, $421.3 million of outstanding payment obligations were elected and sold to a financial institution by participating suppliers[198]. - The company has accrued losses for certain contingent liabilities that are probable and reasonably estimable as of January 31, 2024[200]. - The company is in compliance with all debt covenants as of January 31, 2024, and expects to remain compliant for the next 12 months[213]. - Revenues from customers outside the U.S. represented 6% of net sales during the nine months ended January 31, 2024[242].

Financial Data and Key Metrics Changes - In the third quarter, comparable net sales increased by 6%, driven by the Pet Foods segment and growth in the Away From Home business and Frozen Handheld and Spreads segment [26] - Adjusted earnings per share increased by 12% to $2.48, reflecting improved gross profit margin and favorable selling, distribution, and administrative expenses [38][47] - Free cash flow for the third quarter was $250 million, down from $443 million in the prior year, primarily due to increased working capital needs and lower net income adjusted for noncash items [58] Business Line Data and Key Metrics Changes - U.S. Retail Pet Foods net sales decreased by 39% year-over-year, but increased by 20% when excluding noncomparable sales from divested brands [51] - The Milk-Bone brand grew net sales by double-digits, outpacing the category growth rate [6] - The Sweet Baked Snacks segment, reflecting the acquired Hostess business, contributed net sales of $300 million and segment profit of $68 million, in line with expectations [40] Market Data and Key Metrics Changes - The Away From Home business saw a 13% increase in net sales, led by a 33% growth for Uncrustables sandwiches [8] - International business net sales increased by 3%, primarily driven by Carnation milk and Uncrustables sandwiches in Canada [8] - The coffee category remains strong, with over 70% of coffee consumption occurring at home [5] Company Strategy and Development Direction - The company is focused on integrating and growing the Sweet Baked Snacks business while achieving transformation and cost management goals [22] - The acquisition of Hostess and divestitures of Sahale Snacks and Canadian condiment businesses are part of the strategy to concentrate resources on faster growth opportunities [28] - The company aims to grow Uncrustables to $1 billion in annual net sales by the end of fiscal year 2026, supported by the construction of a new manufacturing site [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in adapting to consumer preferences and sustaining positive momentum in the business [33] - The company anticipates net sales guidance of approximately $8.22 billion for the fiscal year, reflecting a decline of about 3.6% compared to the prior year [41] - Adjusted earnings per share for the full year are projected to be in the range of $9.45 to $9.65, reflecting a $0.10 increase at the mid-point of the range [42] Other Important Information - The company completed the expansion of its second Uncrustables sandwiches plant, which has improved distribution and in-stock levels [1] - The new bakery in Arkadelphia, Arkansas, began operations, enhancing capacity for Donettes and cake products [45] - The company expects fourth quarter adjusted earnings per share to decline by a mid-teen percentage, primarily due to pre-production expenses related to Uncrustables [56] Q&A Session Summary Question: What are the expectations for the Uncrustables brand growth? - The company remains confident in growing Uncrustables to $1 billion in annual net sales by the end of fiscal year 2026, supported by new manufacturing capacity [30] Question: How is the integration of Hostess progressing? - The integration of Hostess is progressing well, with both Hostess and Voortman brands gaining volume share in the quarter [44] Question: What is the outlook for the Pet Foods segment? - The Pet Foods segment is expected to continue strong performance, with Milk-Bone and Meow Mix brands showing significant growth [52]

FISCAL 2024 THIRD QUARTER RESULTS • Net sales increased 1% Comparable net sales increased 6% (excl. acquisition, divestitures, & foreign currency exchange) • Updated full-year fiscal 2024 financial outlook CONSOLIDATED RESULTS 3 Note: Amounts may not add due to rounding THE J.M. SMUCKER Co EXECUTIVE SUMMARY • Free cash flow was $249.6 million, compared to $442.7 million in the prior year FY24 Q3 RESULTS SUPPLEMENT FY24 Q3 RESULTS SUPPLEMENT Reported Net Sales Analysis ($ in millions) FY24 Q3 RESULTS SUPPLEM ...

Fiscal 2024 Third Quarter Financial Results [Executive Summary & CEO Remarks](index=1&type=section&id=EXECUTIVE%20SUMMARY) The J.M. Smucker Co. reported strong Q3 FY2024 results with 1% net sales growth and 12% adjusted EPS increase, driven by strategic portfolio adjustments and brand loyalty | Metric | Q3 FY2024 | Change vs. Prior Year | | :--- | :--- | :--- | | Net Sales | $2,229.2M | +1% | | Net Sales (Comparable) | - | +6% | | Net Income per Diluted Share | $1.13 | -42% | | Adjusted Earnings per Share | $2.48 | +12% | | Cash Provided by Operations | $406.5M | -30.5% | | Free Cash Flow | $249.6M | -43.6% | - The company completed the acquisition of Hostess Brands and two divestitures (Canada condiment business and Sahale Snacks business) during the quarter[1](index=1&type=chunk)[3](index=3&type=chunk) - CEO Mark Smucker highlighted that the strong results were driven by focused execution, sustained brand loyalty, and volume growth across the business, reinforcing the strategic focus on coffee, snacking, and pet foods[3](index=3&type=chunk) [Consolidated Financial Performance (Q3 FY2024)](index=2&type=section&id=THIRD%20QUARTER%20CONSOLIDATED%20RESULTS) Q3 FY2024 consolidated net sales increased 1% to $2.23 billion, with adjusted operating income up 28% despite a 6% GAAP operating income decline due to acquisition costs | Metric | Q3 FY2024 ($M) | Q3 FY2023 ($M) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,229.2 | $2,216.3 | 1% | | Operating Income | $297.4 | $317.9 | (6)% | | Adjusted Operating Income | $457.5 | $357.6 | 28% | - Comparable net sales increased **6%**, reflecting a **4 percentage point** increase from volume/mix (led by Meow Mix and Café Bustelo) and a **2 percentage point** increase from net price realization[6](index=6&type=chunk)[7](index=7&type=chunk) - Operating income decreased by **6%**, primarily driven by a **$98.3 million** increase in special project costs related to the Hostess Brands acquisition, which offset a **9%** increase in gross profit[8](index=8&type=chunk) - Cash provided by operating activities declined to **$406.5 million** from **$584.6 million** year-over-year, mainly due to increased cash required for working capital[12](index=12&type=chunk) [Full-Year Fiscal 2024 Outlook](index=3&type=section&id=FULL-YEAR%20OUTLOOK) Full-year FY2024 guidance updated, with adjusted EPS narrowed to $9.45-$9.65, comparable net sales growth at 8.75%, and free cash flow revised to $500 million | Metric | Current Guidance | Previous Guidance | | :--- | :--- | :--- | | Comparable Net Sales Increase | ~8.75% | 8.5% - 9.0% | | Adjusted Earnings Per Share | $9.45 - $9.65 | $9.25 - $9.65 | | Free Cash Flow | ~$500M | ~$530M | | Capital Expenditures | ~$610M | ~$610M | - The Hostess Brands acquisition is expected to have a net unfavorable impact of approximately **$0.40** on adjusted EPS for the fiscal year[14](index=14&type=chunk) - Guidance assumes an adjusted gross profit margin of approximately **37.5%** and an adjusted effective income tax rate of **24.6%**[15](index=15&type=chunk) [Segment Performance Analysis (Q3 FY2024)](index=4&type=section&id=THIRD%20QUARTER%20SEGMENT%20RESULTS) Q3 segment performance varied, with strong comparable sales growth in U.S. Retail Pet Foods (+20%) and International (+9%), while U.S. Retail Coffee declined 1% - Total segment profit increased to **$539.8 million** from **$444.7 million** in the prior year, driven by growth across most segments and the addition of Sweet Baked Snacks[34](index=34&type=chunk) [U.S. Retail Coffee](index=4&type=section&id=U.S.%20Retail%20Coffee) U.S. Retail Coffee net sales decreased 1% to $727.5 million due to lower pricing, but segment profit increased 2% to $207.8 million from favorable volume/mix | Metric | Q3 FY2024 | % Change vs. Prior Year | | :--- | :--- | :--- | | Net Sales | $727.5M | -1% | | Segment Profit | $207.8M | +2% | | Segment Profit Margin | 28.6% | +80 bps | - Volume/mix increased net sales by **3 percentage points**, primarily driven by the Café Bustelo and Dunkin' brands[16](index=16&type=chunk) [U.S. Retail Frozen Handheld and Spreads](index=4&type=section&id=U.S.%20Retail%20Frozen%20Handheld%20and%20Spreads) U.S. Retail Frozen Handheld and Spreads net sales increased 1% to $436.8 million, with segment profit up 11% to $104.1 million, driven by higher pricing | Metric | Q3 FY2024 | % Change vs. Prior Year | | :--- | :--- | :--- | | Net Sales | $436.8M | +1% | | Segment Profit | $104.1M | +11% | | Segment Profit Margin | 23.8% | +210 bps | - Excluding the divested Sahale Snacks business, net sales increased by **2%**; higher net price realization, including a favorable impact from lapping the Jif recall, was the primary driver[17](index=17&type=chunk) [U.S. Retail Pet Foods](index=4&type=section&id=U.S.%20Retail%20Pet%20Foods) U.S. Retail Pet Foods net sales decreased 39% to $465.2 million due to divestitures, but comparable sales surged 20%, with segment profit flat at $109.5 million | Metric | Q3 FY2024 | % Change vs. Prior Year | | :--- | :--- | :--- | | Net Sales | $465.2M | -39% | | Segment Profit | $109.5M | 0% | | Segment Profit Margin | 23.5% | +910 bps | - Excluding **$372.5 million** in noncomparable sales from divested brands, net sales increased by **$79.1 million**, or **20%**, driven by strong performance from Meow Mix cat food and Milk-Bone dog snacks[18](index=18&type=chunk) [Sweet Baked Snacks](index=5&type=section&id=Sweet%20Baked%20Snacks) The new Sweet Baked Snacks segment, from the Hostess acquisition, contributed $300.3 million in net sales and $68.0 million in segment profit | Metric | Q3 FY2024 | | :--- | :--- | | Net Sales | $300.3M | | Segment Profit | $68.0M | | Segment Profit Margin | 22.6% | - This segment's results are from the acquisition of Hostess Brands on November 7, 2023; prior year comparisons are not provided[1](index=1&type=chunk)[19](index=19&type=chunk) [International and Away From Home](index=5&type=section&id=International%20and%20Away%20From%20Home) International and Away From Home net sales increased 4% to $299.4 million, with comparable sales up 9% and segment profit surging 34% to $50.4 million | Metric | Q3 FY2024 | % Change vs. Prior Year | | :--- | :--- | :--- | | Net Sales | $299.4M | +4% | | Segment Profit | $50.4M | +34% | | Segment Profit Margin | 16.8% | +380 bps | - Comparable net sales increased **9%**, with volume/mix contributing **5 percentage points** of growth, primarily driven by Smucker's Uncrustables frozen sandwiches[20](index=20&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) Unaudited financial statements show a 42% Q3 net income drop to $120.4 million, total assets increased to $20.2 billion, and a $3.9 billion cash outflow for the Hostess acquisition [Condensed Consolidated Statements of Income](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income) Q3 net sales grew 1% to $2.23 billion, but net income declined 42% to $120.4 million due to special project costs and increased interest expense | Metric (Q3) | FY2024 ($M) | FY2023 ($M) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,229.2 | $2,216.3 | 1% | | Gross Profit | $823.1 | $755.8 | 9% | | Operating Income | $297.4 | $317.9 | (6)% | | Net Income | $120.4 | $208.5 | (42)% | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of January 31, 2024, total assets increased to $20.2 billion, driven by the Hostess acquisition, with long-term debt rising to $8.1 billion | Metric | Jan 31, 2024 ($M) | Apr 30, 2023 ($M) | | :--- | :--- | :--- | | Total Assets | $20,247.2 | $14,991.4 | | Goodwill | $7,667.8 | $5,216.9 | | Long-term Debt | $8,121.1 | $4,314.2 | | Total Shareholders' Equity | $7,560.1 | $7,290.8 | [Condensed Consolidated Statements of Cash Flow](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Q3 net cash from operating activities decreased to $406.5 million, with investing activities showing a $3.57 billion net cash use, primarily for the Hostess acquisition | Cash Flow Activity (Q3) | FY2024 ($M) | FY2023 ($M) | | :--- | :--- | :--- | | Net Cash from Operating | $406.5 | $584.6 | | Net Cash from Investing | ($3,567.5) | ($97.5) | | Net Cash from Financing | ($428.2) | ($410.6) | [Non-GAAP Financial Measures & Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures, including adjusted gross profit of $828.3 million and adjusted operating income of $457.5 million, are provided with reconciliations to enhance comparability - The company uses non-GAAP measures such as adjusted operating income and adjusted EPS to evaluate performance internally, excluding items like special project costs, amortization, and gains/losses on divestitures to improve year-over-year comparability[35](index=35&type=chunk)[36](index=36&type=chunk) Reconciliation of Non-GAAP Financial Measures (Q3) | Reconciliation (Q3) | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | Gross Profit | $823.1M | $5.2M | $828.3M | | Operating Income | $297.4M | $160.1M | $457.5M | | Net Income | $120.4M | $142.2M | $262.6M | | EPS (Diluted) | $1.13 | $1.35 | $2.48 | FY2024 Guidance Reconciliation | FY2024 Guidance Reconciliation | Low | High | | :--- | :--- | :--- | | Net Income per Share (GAAP) | $6.35 | $6.55 | | Adjustments (Amortization, Special Costs, etc.) | $3.10 | $3.10 | | Adjusted Earnings per Share | $9.45 | $9.65 |