J.M. Smucker (SJM) is set report Q3 earnings tomorrow, a few points to note

Shares of The J.M. Smucker Co. (NYSE: SJM) were down on Monday. The stock has gained 10% over the past 12 months. The company is set to report third quarter 2023 earnings results on Tuesday, February 28, before market open. Here’s what to expect from the earnings report:

Revenue  

Analysts are projecting revenue of $2.22 billion for JM Smucker in Q3 2023. This compares to sales of $2.1 billion reported in the same period last year. In the second quarter of 2023, sales increased 8% year-over-year to $2.20 billion.

Earnings

Analysts are predicting EPS of $2.12 for Q3 2023 which compares to adjusted EPS of $2.33 in Q3 2022. In Q2 2023, the company reported adjusted EPS of $2.40, which was down 1% year-over-year.

Points to note

In the second quarter of 2023, SJM’s comparable sales increased 11%. The company continued to see strength in the pet, snacking and coffee categories. The Pet Foods segment recorded comparable net sales growth of 14% in Q2, with strength in categories like cat food, dog food and dog snacks.

Net sales in the Coffee segment increased 10% helped by strength in the at-home coffee portfolio. The at-home coffee category is expected to remain resilient despite declines in volume and impacts from inflation as the majority of coffee-drinking occasions occur at home.

The company’s strong brand portfolio will continue to be an advantage. In Q2, 71% of its US retail sales came from brands that are growing or maintaining share. The Consumer Foods business continues to benefit from strength in Uncrustables sandwiches and Smucker’s fruit spreads.

The ongoing cost inflation, supply chain volatility and macroeconomic headwinds continue to impact the company’s business and this is likely to have continued through the third quarter. Price increases might have had an effect on volumes as well. In addition, the Jif peanut butter recall will continue to impact results throughout this fiscal year.

Click here to read the full transcript of JM Smucker’s Q2 2023 earnings conference call