Shares of The J.M. Smucker Co. (NYSE: SJM) stayed red on Friday. The stock has dropped 6% over the past three months. The branded foods company is slated to report its second quarter 2025 earnings results on Tuesday, November 26, before market open. Here’s a look at what to expect from the earnings report:
Revenue
JM Smucker expects net sales for the second quarter of 2025 to increase a mid-teen percentage, mainly reflecting sales from the Hostess Brands acquisition and base business growth. Analysts are projecting revenue of $2.26 billion for Q2. This represents a 16% increase from the same period a year ago. In the first quarter of 2025, net sales increased 18% year-over-year to $2.1 billion.
Earnings
SJM expects adjusted earnings per share to decline mid-single-digits in Q2 2025, mainly due to higher expenses, partly offset by income from the Hostess acquisition. Analysts are forecasting EPS of $2.51 for Q2 2025, which is down from EPS of $2.59 reported in Q2 2024. In Q1 2025, adjusted EPS grew 10% YoY to $2.44.
Points to note
JM Smucker continues to operate in a dynamic environment, which has led it to take a more cautious approach towards the full year. The company lowered its guidance for fiscal year 2025 taking into account the impact of inflationary pressures and lower discretionary income on its dog snacks and sweet baked goods categories. It also anticipates demand elasticity in its coffee portfolio due to pricing actions being taken to counter higher green coffee costs. These factors may have had an effect on the Q2 performance as well.
At the same time, SJM can be expected to benefit from continued demand for its reputable brands as well as growth investments and cost management. The company has been focusing its resources on its Uncrustables, Milk-Bone, Meow-Mix, and Café Bustelo brands where it sees growth opportunities. Earlier this month, SJM opened a new manufacturing facility in McCalla, Alabama to increase production capacity for its Uncrustables brand.
JM Smucker has also been reshaping its portfolio through acquisitions and divestitures. Last month it announced its decision to sell its Voortman cookie brand to premium snacks company Second Nature Brands for approx. $305 million. The deal is expected to close in the third quarter of 2025, and is expected to be dilutive to full-year adjusted EPS by approx. $0.25. Further updates on this transaction are worth watching.
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