J.M. Smucker Reports 2Q Earnings Beat

JP Morgan has published a research report on the J.M. Smucker Company SJM after the company reported 2Q earnings yesterday. In the report, JP Morgan writes "Smucker reported pro forma 2Q11 (Oct.) EPS yesterday of $1.38, a nickel above consensus. Earnings would have been four pennies higher excluding mark-to-market charges. The company also raised guidance by $0.05. The quality of the quarter was good but not flawless: although margins were strong, the top line was a bit light and marketing spending was down $15MM year-on-year. After speaking with management, we are confident that the $15MM gap was more-or-less one-time in nature, and had more to do with a difficult comparison than anything else, but it still took place. Note that SJM's guidance excludes any potential benefit from share repurchases." JP Morgan maintains its Overweight rating but has raised the price target from $70 to $71. The J.M. Smucker Company closed yesterday at $62.15.