Packaged food maker J.M. Smucker's Q2 sales slightly beat expectations

Overview

• J.M. Smucker fiscal Q2 net sales rise 3%, slightly beating analyst expectations

• Adjusted EPS for fiscal Q2 meets analyst estimates despite a 24% decline yr/yr

• Company updates full-year fiscal 2026 guidance, reflecting confidence in strategic priorities

Outlook

• Company expects fiscal 2026 net sales to rise 3.5% to 4.5%

• J.M. Smucker projects adjusted EPS for fiscal 2026 at $8.75 to $9.25

• Free cash flow for fiscal 2026 expected to be around $975 mln

Result Drivers

• NET SALES GROWTH - Driven by higher net pricing, particularly in coffee, despite a decrease in volume/mix

• OPERATING INCOME INCREASE - Boosted by absence of prior year's loss from Voortman business sale

• ADJUSTED EPS DECLINE - Impacted by higher commodity costs and unfavorable volume/mix

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for J M Smucker Co is $118.00, about 11.6% above its November 24 closing price of $104.27

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPnbQXdb1a

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