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Shares of The JM Smucker Co., NYSE: SJM. The stock has gained 10% over the past 12 months. The company will report its third quarter 2023 earnings results on Tuesday, February 28, before the market opens. Here’s what to expect from an income statement:
results
Analysts project revenue of $2.22 billion for JM Smucker in Q3 2023. This compares to sales of $2.1 billion reported in the same period last year. In the second quarter of 2023, sales increased by 8% annually to $2.20 billion.
earnings
Analysts forecast EPS of $2.12 for Q3 2023 compared to adjusted EPS of $2.33 in Q3 2022. In Q2 2023, the company reported adjusted EPS of $2.40, which was down 1% year over year.
Points to note
In the second quarter of 2023, SJM’s comparable sales increased by 11%. The company continues to see strength in the pet, snack and coffee categories. The Pet Foods segment recorded comparable net sales growth of 14% in Q2, with strength in categories such as cat food, dog food and dog snacks.
Net sales in the Coffee segment increased by 10% helped by strength in the home coffee portfolio. The home coffee category is expected to remain resilient despite declining volumes and the impact of inflation as the majority of coffee drinking events occur at home.
The company’s strong brand portfolio will continue to be an advantage. In Q2, 71% of US retail sales came from brands that grew or maintained stock. The Consumer Foods business continues to benefit from the strength in Uncrustables sandwiches and Smucker’s fruit spread.
Ongoing cost inflation, supply chain volatility and macroeconomic pressures continue to affect the company’s business and this will continue into the third quarter. A price increase may also have an impact on volume. In addition, the Jif The peanut butter recall will continue to impact results throughout this fiscal year.
Click here to read the full transcript of JM Smucker’s Q2 2023 earnings conference call
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