Smucker (SJM) came out with quarterly earnings of $2.1 per share, missing the Zacks Consensus Estimate of $2.12 per share. This compares to earnings of $2.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.94%. A quarter ago, it was expected that this food maker would post earnings of $1.95 per share when it actually produced earnings of $1.9, delivering a surprise of -2.56%.Over the last four quarters, the company has surp ...

Group 1 - The company, J.M. Smucker, has narrowed its full-year guidance [1] - Higher prices for coffee have driven revenue and profit growth in the second quarter [1]

Financial Data and Key Metrics Changes - Net sales increased by 3% in the second quarter, with comparable net sales rising by 5% after excluding prior year sales related to divested businesses and foreign currency exchange [21] - Adjusted gross profit decreased by $90 million, or 10%, compared to the prior year, primarily due to higher commodity costs and unfavorable volume mix [22] - Adjusted earnings per share was $2.10, a decrease of 24% versus the prior year [23] Business Line Data and Key Metrics Changes - Uncrustables brand net sales grew by 7% at the total company level, with significant household penetration potential remaining [4][5] - Café Bustelo brand net sales increased by 41% in the U.S. retail coffee portfolio, driven by distribution expansion and marketing investments [8] - Milk-Bone brand showed sequential improvement in net sales growth, with expectations to return to growth in the latter half of the fiscal year [9] - Meow Mix brand outpaced the dry cat food category, growing sales nearly three times the category rate [11] Market Data and Key Metrics Changes - U.S. retail coffee segment net sales increased by 21%, driven by higher pricing to recover increased commodity costs [23] - U.S. retail frozen handheld and spreads saw a net sales decrease of 5%, primarily due to declines in peanut butter and fruit spreads [24] - U.S. retail pet foods net sales decreased by 7%, reflecting a decline in dog snacks [25] Company Strategy and Development Direction - The company is focused on three strategic priorities: accelerating organic growth, embedding transformation, and fostering a be-bold mindset [3] - The company aims to position the Uncrustables brand to generate over $1 billion in net sales by the end of the fiscal year [7] - The Hostess brand strategy includes reducing SKU count by 25% to simplify offerings and prioritize high-velocity products [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic environment, focusing on elements within their control to drive long-term growth [20] - The company anticipates full-year net sales guidance to increase by 3.5%-4.5%, reflecting challenges from divested businesses [29] - Adjusted earnings per share guidance range is narrowed to $8.75-$9.25, maintaining the previous midpoint [33] Other Important Information - Free cash flow for the second quarter was $280 million, down from $317 million in the prior year [28] - The company plans to prioritize debt reduction, aiming to pay down $500 million of debt annually [28] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is omitted.

Financial Data and Key Metrics Changes - Net Sales increased by 3% in the second quarter, with comparable Net Sales rising by 5% when excluding prior year sales related to divested businesses and foreign currency exchange [21] - Adjusted Gross Profit decreased by $90 million, or 10%, compared to the prior year, primarily due to higher commodity costs and unfavorable volume mix [22] - Adjusted Earnings per share was $2.10, a decrease of 24% versus the prior year [23] Business Line Data and Key Metrics Changes - Uncrustables Brand grew Net Sales by 7% at the total company level, with significant household penetration potential remaining [4][5] - Café Bustelo Brand saw a 41% increase in Net Sales in the U.S. Retail Coffee portfolio, driven by distribution expansion and marketing investments [8] - Milk-Bone Brand showed sequential improvement in Net Sales growth, with expectations to return to growth in the latter half of the fiscal year [9][10] - Sweet Baked Snacks segment experienced a 19% decrease in Net Sales, with a 3% decline when excluding non-comparable sales from the prior year [26] Market Data and Key Metrics Changes - U.S. Retail Coffee segment Net Sales increased by 21%, driven by higher pricing to recover increased commodity costs [23] - International and Away From Home segment Net Sales grew by 10%, with the Away From Home business increasing by 17% [27] - Pet Foods segment Net Sales decreased by 7%, reflecting declines in Dog Snacks and contract manufacturing sales related to divested brands [25] Company Strategy and Development Direction - The company is focused on three strategic priorities: accelerating organic growth, embedding transformation, and fostering a Be-Bold mindset [3] - Key growth platforms include Uncrustables, Café Bustelo, Milk-Bone, Meow Mix, and Hostess Brands, with significant investments in brand-building and innovation [4][7] - The company aims to stabilize and position the Hostess Brand for long-term growth by reducing SKU count and enhancing marketing efforts [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic environment, emphasizing the importance of strategic investments and consumer-led innovation [20] - The company anticipates full-year Net Sales guidance to increase by 3.5%-4.5%, reflecting challenges from divested businesses and contract manufacturing sales [29][30] - Adjusted Earnings per share guidance is narrowed to $8.75-$9.25, maintaining the previous midpoint, with expectations for sequential improvement throughout the fiscal year [33][35] Other Important Information - Free Cash Flow for the second quarter was $280 million, down from $317 million in the prior year [28] - The company plans to prioritize debt reduction, aiming to pay down $500 million of debt annually [28] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is omitted.

Financial Data and Key Metrics Changes - Net sales increased by 3% in the second quarter, with comparable net sales rising by 5% after excluding prior year sales related to divested businesses and foreign currency exchange [22] - Adjusted gross profit decreased by $90 million, or 10%, compared to the prior year, primarily due to higher commodity costs and unfavorable volume mix [23] - Adjusted earnings per share was $2.10, a decrease of 24% versus the prior year [24] Business Line Data and Key Metrics Changes - Uncrustables brand net sales grew by 7% at the total company level, with significant household penetration potential remaining [4][5] - Café Bustelo brand net sales increased by 41% in the U.S. retail coffee portfolio, driven by distribution expansion and marketing investments [8] - Milk-Bone brand showed sequential improvement in net sales growth, with expectations to return to growth in the latter half of the fiscal year [9][10] - Meow Mix brand outpaced the dry cat food category, growing sales nearly three times the category rate [11] Market Data and Key Metrics Changes - U.S. retail coffee segment net sales increased by 21%, with net price realization contributing significantly to this growth [24] - U.S. retail frozen handheld and spreads saw a net sales decline of 5%, primarily due to decreases in peanut butter and fruit spreads [25] - U.S. retail pet foods experienced a 7% decrease in net sales, driven by declines in dog snacks [26] Company Strategy and Development Direction - The company is focused on three strategic priorities: accelerating organic growth, embedding transformation, and fostering a be-bold mindset [3] - The strategy includes significant investments in brand-building and innovation, particularly for key growth platforms like Uncrustables and Café Bustelo [4][7] - The company aims to stabilize and position the Hostess brand for long-term growth through SKU reduction and improved marketing [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic environment, emphasizing the importance of controlling internal factors [21] - The company anticipates continued double-digit growth for the Café Bustelo brand and a positive outlook for the Uncrustables brand [9][18] - Future growth opportunities are expected in the away from home business, which is projected to grow to approximately 10% of total company net sales this fiscal year [20] Other Important Information - Free cash flow for the second quarter was $280 million, down from $317 million in the prior year [29] - The company plans to prioritize debt reduction, aiming to pay down $500 million of debt annually [29] - Full-year net sales guidance is narrowed to an increase of 3.5%-4.5%, reflecting various headwinds from divested businesses [30][31] Q&A Session Summary Question: What are the growth expectations for the Uncrustables brand? - The Uncrustables brand is on track to generate over $1 billion in net sales by the end of the fiscal year, with significant household penetration potential remaining [7] Question: How is the company addressing commodity cost pressures? - The company is managing commodity costs through flexible pricing strategies and anticipates normalization over time [16] Question: What is the outlook for the Hostess brand? - The Hostess brand is expected to stabilize performance and position for sustainable long-term growth through strategic actions and marketing efforts [15]

Financial Performance - Net sales for Q2 FY26 were $2.3 billion, an increase of $58.9 million, or 3%, with a 5% increase when excluding divestitures and foreign currency effects[4] - Net income per diluted share was $2.26, while adjusted earnings per share decreased by 24% to $2.10[4] - Cash provided by operations was $346.5 million, down from $404.2 million in the prior year, and free cash flow was $280.2 million compared to $317.2 million[10] - The company updated its full-year fiscal 2026 guidance, expecting net sales to increase by 3.5% to 4.5% compared to the prior year[12] - Adjusted earnings per share guidance is now set at $8.75 to $9.25, reflecting an increase in net sales and adjusted gross profit margin of approximately 35%[13] - Net income for the three months ended October 31, 2025, was $241.3 million, compared to a net loss of $24.5 million in the same period of 2024[25] - Adjusted earnings per share for the three months ended October 31, 2025, were $2.10, down from $2.76 in the same period of 2024[42] - Net income per common share (assuming dilution) is projected to be between $5.66 and $6.16 for the year ending April 30, 2026[44] - Adjusted earnings per share are expected to range from $8.75 to $9.25 for the same period[44] Segment Performance - U.S. Retail Coffee segment net sales increased by 21% to $848.9 million, driven by higher net pricing, although segment profit decreased by 24%[14] - U.S. Retail Frozen Handheld and Spreads segment net sales decreased by 5% to $461.1 million, with segment profit down by 12%[15] - U.S. Retail Pet Foods segment net sales decreased by 7% to $413.2 million, while segment profit increased by 2%[16] - Sweet Baked Snacks segment net sales decreased by 19% to $256.1 million, with segment profit down by 69%[18] - International and Away From Home segment net sales increased by 9% to $350.8 million, with segment profit increasing by 12%[19] - U.S. Retail Coffee segment net sales increased to $848.9 million, up 20.5% from $704.0 million year-over-year[33] - The U.S. Retail Pet Foods segment reported net sales of $413.2 million, a decrease of 7.2% from $445.4 million in the prior year[33] Operational Metrics - Gross profit decreased by 2% to $869.9 million for the three months ended October 31, 2025, compared to $886.1 million in the prior year, resulting in a gross margin of 37.3%[25] - Operating income increased by 147% to $418.5 million for the three months ended October 31, 2025, compared to $169.7 million in the same period of 2024[25] - Total segment profit decreased to $479.0 million for the three months ended October 31, 2025, down from $578.8 million in 2024, reflecting a decline of 17.2%[33] - Adjusted operating income for the three months ended October 31, 2025, was $394.3 million, a decrease of 19.6% compared to $490.6 million in 2024[40] - The gross profit margin for the three months ended October 31, 2025, was 33.9%, down from 38.7% in 2024[40] - The company reported a 14% increase in the cost of products sold for the six months ended October 31, 2025, totaling $3,098.8 million compared to $2,713.0 million in the prior year[25] Cash Flow and Assets - Free cash flow for the three months ended October 31, 2025, was $280.2 million, compared to $317.2 million in 2024, indicating a decrease of 11.6%[42] - Cash and cash equivalents at the end of the period were $62.8 million, compared to $49.2 million at the end of the same period in 2024[29] - Total assets as of October 31, 2025, were $17,628.3 million, an increase from $17,563.3 million as of April 30, 2025[27] - Current liabilities decreased to $2,626.4 million as of October 31, 2025, from $2,652.0 million as of April 30, 2025[27] Strategic Initiatives - The company is focused on integrating Hostess Brands' operations and achieving financial forecasts related to this acquisition, which may impact future performance[21] - A non-recurring pre-tax settlement charge of $0.32 per share is anticipated due to the termination of a U.S. defined benefit pension plan[45] - The change in net cumulative unallocated derivative gains and losses is projected to be $0.72 per share, but future projections are uncertain due to market conditions[44]

Financial Performance - Net sales increased by 3% to $2330.1 million compared to $2271.2 million in the prior year[5] - Comparable net sales increased by 5%[2] - Adjusted earnings per share decreased by 24% to $2.10[2, 5] - Free cash flow was $280.2 million, down from $317.2 million in the prior year[2] - Adjusted gross profit decreased by 10% to $789.9 million[5] - Adjusted operating income decreased by 20% to $394.3 million[5] Segment Performance - U S Retail Coffee net sales increased by 21% to $848.9 million[14] - U S Retail Frozen Handheld and Spreads net sales decreased by 5% to $461.1 million[14] - U S Retail Pet Foods net sales decreased by 7% to $413.2 million[14] - Sweet Baked Snacks net sales decreased by 19% to $256.1 million[14] - International and Away From Home net sales increased by 9% to $350.8 million[14] Fiscal Year 2026 Outlook - The company expects net sales to increase by 3.5% to 4.5%[16] - Adjusted EPS is projected to be in the range of $8.75 to $9.25[16] - Free cash flow is expected to be $975 million[16]

Group 1 - HP Inc. is expected to report quarterly earnings of 92 cents per share on revenue of $14.48 billion, with shares rising 0.5% to $24.51 in after-hours trading [2] - Semtech Corp. reported third-quarter revenue of $267 million, missing analyst estimates of $268.83 million, while adjusted earnings were 48 cents per share, beating estimates of 45 cents per share; shares dipped 6.9% to $65.17 [2] - J M Smucker Co. is anticipated to post quarterly earnings of $2.10 per share on revenue of $2.32 billion, with shares gaining 0.5% to $104.75 in after-hours trading [2] - Zoom Communications Inc. reported third-quarter revenue of $1.23 billion, exceeding the consensus estimate of $1.21 billion, and adjusted earnings of $1.52 per share, beating estimates of $1.44 per share; shares gained 3.6% to $81.45 [2] - Alibaba Group Holding Ltd. is expected to report quarterly earnings of 49 cents per share on revenue of $34.43 billion, with shares gaining 1% to $162.30 in after-hours trading [2]

Core Insights - The J.M. Smucker Company is set to announce its quarterly earnings on November 25, 2025, with Wall Street expecting an EPS of $2.11 and revenue of approximately $2.32 billion [1][4] Financial Performance - A projected EPS of $2.14 indicates a 22.5% decrease year-over-year, while revenue is expected to grow by 2.1% to $2.32 billion, driven by strong coffee sales [2][3] - The consensus estimate for EPS is $2.11, reflecting a 23.6% decline from the previous year, with an average earnings surprise of 5.1% over the last four quarters [4] Challenges and Market Conditions - The company faces challenges in its snacks and pet foods divisions, alongside increased costs from higher coffee tariffs, contributing to the anticipated earnings decline [3] - Key financial ratios include a price-to-sales ratio of 1.29, an enterprise value to sales ratio of 2.21, a debt-to-equity ratio of 1.36, and a current ratio of 0.81, indicating potential liquidity issues [5]

Core Insights - Investors will have a break next week due to the market closure on November 27 for Thanksgiving, allowing time for assessment and reflection after a challenging week for Wall Street [2] - Despite the end of the U.S. government shutdown, some key economic reports are still being canceled due to insufficient survey data, impacting market expectations [3] Earnings Reports - Several companies are scheduled to report earnings next week, including Alibaba Group (BABA), Dell (DELL), Deere & Company (DE), Analog Devices (ADI), Best Buy (BBY), HP (HPQ), and DICK'S Sporting Goods (DKS) [4] - Specific earnings highlights include: - Monday: Agilent Technologies (A), Zoom Communications (ZM), Symbotic (SYM) [5] - Tuesday: Alibaba, Analog Devices (ADI), Dell Technologies, Best Buy (BBY), Autodesk (ADSK), Workday (WDAY), Zscaler (ZS), HP (HPQ), DICK'S Sporting Goods, J.M. Smucker (SJM), and NIO (NIO) [5] - Wednesday: Deere, Li Auto (LI) [5] - Thursday: Intuitive Machines (LUNR) [6] - Friday: Frontline Plc (FRO), Buckle, Inc. (BKE) [6]