Analysts, meanwhile, remain slightly optimistic on the stock with an average 12-month price target of $113.17, which is at a 4% upside from the current trading price. Four out of the six analysts covering the stock has a HOLD rating, while two recommend BUY.
As J.M. Smucker reports results on November 28, Wednesday, analysts expect second-quarter earnings of $2.35 per share. During the same quarter last year, the company had earned $2.02 per share.
Meanwhile, revenue is estimated to grow by 6.5% to $2.05 billion. J.M. Smucker can hardly afford another earnings miss in the heels of two bad quarters.
Investors remain particularly concerned about the slowed earnings growth rate. Though the company acquired pet food company Ainsworth Pet Nutrition in May this year, it is yet to translate as an earning booster.
Analysts expect profits to improve 4% this year and a meager 1% next year. Note that it compares with the 10% earnings growths reported by the company during the past five years.
JM Smucker sheds baking brands to focus on pet foods, snacking
During the prior sequential quarter, J.M. Smucker had cut down its 2019 full year revenue guidance to reflect the impact of the divestiture of its US baking business. The company now expects net sales of $8 billion, compared to the prior estimate of $8.3 billion. Market pundits expect the company to reaffirm its revenue guidance this quarter.