J M Smucker Q2 Earnings Top Estimates

J M Smucker Co SJM reported second-quarter FY22 sales growth of 0.8% year-on-year, to $2.05 billion, beating the analyst consensus of $1.95 billion. Net sales excluding divestitures and foreign currency exchange increased 8%.

• Adjusted EPS of $2.43 beat the analyst consensus of $2.04.
• The gross profit decreased 13% Y/Y to $711.5 million and the gross margin contracted by 550 basis points to 34.7%.
• The operating margin contracted 350 basis points to 15.2%, and operating income for the quarter fell 18% to $311.8 million.
• The company held $155.3 million in cash and equivalents as of October 31, 2021. Cash provided by operating activities totaled $165.1 million with a free cash flow of $105.9 million.
• Outlook: J.M.Smucker raised FY22 adjusted EPS outlook to $8.35 - $8.75 (prior view $8.25 - $8.65) versus the consensus of $8.41.
• It sees net sales increase to be (0.5)% - 0.5% (prior view (2.5)% - (1.5)%.
• Price Action: SJM shares are trading higher by 5.04% at $132.81 on the last check Tuesday.