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2022-06-07 18:30

Stock of J M Smucker Co closed 6.0% up on Tuesday after the company reported its financial results for the fourth quarter that beat analysts’ expectations. The NYSE-listed company is behind notable names like Jif, Flogers, Natural Balance and Crisco.

J M Smucker Q4 Financial Highlights

The following results are compared to the fourth quarter fiscal 2021.

• Net income shot up 37% to $202.1 million.

• Adjusted earnings per share rose 18% to $2.23

• $2.03 billion in revenue represents a 6.0% growth

Wall Street had forecast $1.98 billion in revenue and $1.88 of adjusted EPS. In the earnings press release, CEO Mark Smucker said:

“Our strong financial results reflect sustained consumer demand for at-home food and coffee and consumers' desire for our trusted and iconic brands. During the year, we also made significant progress in strengthening our financial position, as we reduced our debt balance, while also returning cash to our shareholders through dividends and share repurchases.”

Other Prominent Figures

Other notable figures in the earnings report include a 6% year-over-year increase in net sales from U.S. Retail Pet Foods, an 11% increase from U.S. Retail Coffee, and a 5% decrease from U.S. Retail Consumer Foods on Jif peanut butter recall.

The company noted $393.7 million cash from operations versus $291.0 million in Q4 of the previous financial year. Free cash flow stood at $220.7 million.

J M Smucker’s Outlook for 2023

J M Smucker now forecasts its sales to grow by 3.5% to 4.5% this year. It guided for earnings per share on an adjusted basis in the range of $7.85 to $8.25. In comparison, FactSet consensus was for $8.89 of adjusted EPS in fiscal 2023 and a 3.0% increase in sales. The CEO added:

“Looking ahead to fiscal year 2023, we are focused on continuing the momentum of the business, investing in growth focused platforms such as Uncrustables, partnering with retailers to restock Jif products following the recent recall, and supporting our talented employees who are instrumental to our success.”

The 14.11 billion company that trades at a PE ratio of 24.51 is currently down roughly 4.7% for the year. Wall Street, at present, has a “hold” rating on the stock.