Does The Street Have J. M. Smucker Figured Out?

J. M. Smucker (NYSE: SJM  ) is expected to report Q3 earnings on Feb. 15. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict J. M. Smucker's revenues will expand 6.1% and EPS will grow 13.9%.

The average estimate for revenue is $1.56 billion. On the bottom line, the average EPS estimate is $1.39.

Revenue details
Last quarter, J. M. Smucker chalked up revenue of $1.63 billion. GAAP reported sales were 7.6% higher than the prior-year quarter's $1.51 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.45. GAAP EPS of $1.36 for Q2 were 21% higher than the prior-year quarter's $1.12 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 33.4%, 40 basis points worse than the prior-year quarter. Operating margin was 16.1%, 60 basis points worse than the prior-year quarter. Net margin was 9.1%, 70 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.94 billion. The average EPS estimate is $5.21.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 461 members out of 482 rating the stock outperform, and 21 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give J. M. Smucker a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on J. M. Smucker is hold, with an average price target of $86.92.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 11, 2013, at 10:35 AM, joereto wrote:

    When you have an 8-10 year time frame and consistently add money to your Smucker's holdings shares will noticeably appreciate. I got on board with this company accidently when PG sold its Jif peanut butter to Smucker's in 2003. Look at this company's equity/debt's very good becase the company does not owe its creditors much money. I'm looking for the stock price to push above 100 in 2013. Any pullbacks are buying opportunities!

  • Report this Comment On February 13, 2013, at 8:26 AM, applecreeker wrote:

    Try to find Tim Smucker's parking spot in the lot in Orrville, OH and you will learn why the company is solid: They really do "have to be good" to all the employees and vendors, as well as their customers and consumers. The company founders and the current generation are the same quality people.

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9/26/2016 4:01 PM
SJM $137.72 Up +0.54 +0.39%
J.M. Smucker CAPS Rating: *****