J M Smucker Raises Annual Guidance On Solid Q2 Earnings Beat

J M Smucker Co SJM reported second-quarter FY23 sales growth of 8% year-on-year to $2.21 billion, beating the consensus of $2.17 billion.
Net sales, excluding divestitures and foreign currency exchange, increased 11%.
Adjusted EPS of $2.40 beat the analyst consensus of $2.19.
Gross profit decreased 1% Y/Y to $701.1 million and the gross margin contracted by 290 basis points to 31.8%.
The operating margin contracted 190 basis points to 13.3%, and operating income for the quarter fell 6% to $293.4 million.
The company held $27.1 million in cash and equivalents as of October 31, 2022. Cash provided by operating activities totaled $205 million, with a free cash flow of $102.9 million.
Outlook: J M Smucker raised FY23 adjusted EPS from $8.20 - $8.60 to $8.35 - $8.75 (consensus $8.49). It raised sales growth outlook from 4% - 5% to 5.5% - 6.5%.
Price Action: SJM shares are trading higher by 0.59% at $147.00 in premarket on the last check Monday.

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