Categories AlphaGraphs, Consumer, Earnings

J.M. Smucker’s Q1 results miss expectations

The J.M. Smucker Company (NYSE: SJM) missed market estimates for revenue and earnings in the first quarter of 2020, causing shares to fall over 5% in premarket hours on Tuesday. The consensus estimate was for earnings of $1.74 per share on revenue of $1.87 billion.

Net sales dropped 6% year-over-year to $1.77 billion, reflecting the impact of $73.1 million of net sales in the prior year attributed to the divested US baking business. Sales results were also negatively impacted by lower volume/mix and net price realization. Comparable net sales fell 4%.  

J.M. Smucker missed market estimates for revenue and earnings in Q1 2020

Net income rose 16% year-over-year to $154.6 million, or $1.36 per share. Adjusted EPS fell 11% to $1.58.

Gross profit increased 3%, driven mainly by a favorable net impact of lower prices and lower costs, and the benefit of the Ainsworth acquisition.

The company posted sales declines across all its segments during the first quarter compared to the prior-year period. In US Retail Pet Foods, sales results were impacted by volume/mix and a decrease in private label products. Sales in US Retail Coffee were hurt by lower volume/mix, mainly attributable to the Folgers brand, and net price realization.   

Also see: J.M. Smucker Q1 2020 Earnings Preview

Sales results in the US Retail Consumer Foods segment were mainly impacted by the divestiture of the US baking business as well as lower net pricing, primarily on the Jif brand. In the International and Away From Home division, sales were hurt by various factors such as the US baking business divestiture, negative foreign exchange impacts, lower volume/mix and lower net pricing.  

For the full year of 2020, net sales are expected to range from down 1% to flat compared to the prior year. On a comparable basis, net sales are expected to range from flat to up 1%. Adjusted EPS is expected to be $8.35-8.55.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top