The 10-second takeaway
For the quarter ended April 30 (Q4), J.M. Smucker met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Margins dropped across the board.
J.M. Smucker recorded revenue of $1.36 billion. The 11 analysts polled by S&P Capital IQ expected revenue of $1.35 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.19 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.10. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.99 per share. GAAP EPS of $0.93 for Q4 were 15% higher than the prior-year quarter's $0.81 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.2%, 360 basis points worse than the prior-year quarter. Operating margin was 15.6%, 130 basis points worse than the prior-year quarter. Net margin was 7.7%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.28 billion. On the bottom line, the average EPS estimate is $1.04.
Next year's average estimate for revenue is $5.84 billion. The average EPS estimate is $5.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 455 members out of 478 rating the stock outperform, and 23 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give J.M. Smucker a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on J.M. Smucker is outperform, with an average price target of $82.58.
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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. 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.