Revenue
Earnings
JM Smucker anticipates adjusted EPS to decline by a mid-teen percentage in the fourth quarter of 2024. The consensus estimate for Q4 EPS is $2.33, which compares to adjusted EPS of $2.64 reported in the year-ago quarter. In Q3 2024, adjusted EPS increased 12% to $2.48.
Points to note
JM Smucker expects comparable sales to increase a mid-single-digit percentage in Q4 2024. In the third quarter of 2024, comparable sales increased 6%, helped by volume/mix and net price realization.
Last quarter, the company benefited from volume growth, led by stable demand for its brands such as Café Bustelo, Dunkin, and Uncrustables. It also saw strong gains in its Meow Mix and Milk Bone pet food brands, and meaningful contribution from the Hostess and Voortman brands. This momentum is expected to continue in the fourth quarter as well.
JM Smucker is on track with its efforts in reshaping its portfolio. The acquisition of Hostess Brands has helped further expand its portfolio, and the divestitures of Sahale Snacks and the Canadian condiment businesses will help the company focus its resources on its coffee, snacking, and pet foods categories. The revamping of its portfolio is helping drive sales growth and margin improvement.
SJM’s efforts in increasing its distribution capacity and reducing costs, along with its pricing strategy, are paying off. The company expects its sales growth in the US Retail segment to reaccelerate to double-digits in the fourth quarter, helped by distribution gains. Alongside US Retail, it expects gains in the Away From Home business as well as strong contribution from the Sweet Baked Snacks business. Overall, JM Smucker is likely to see the momentum in its business continue in the fourth quarter.