Why Are J M Smucker Shares Trading Lower Today

  • J M Smucker Co SJM reported a third-quarter FY21 sales decline of 1% year-on-year, to $2.06 billion, beating the consensus of $2.04 billion. Organic net sales growth was 4%.
  • Adjusted EPS of $2.33 beat the Street view of $2.09.
  • The gross profit decreased 16% Y/Y to $126.3 million and the gross profit margin contracted by 580 basis points to 33.2%.
  • The operating margin dropped 1230 basis points to 7.3%, and operating income for the quarter fell 63% to $150.6 million.
  • The company held $284.3 million in cash and equivalents as of January 31, 2022. Cash from operations for the quarter totaled $439.7 million, and the free cash flow was $322.4 million.
  • "Looking ahead, we are navigating a dynamic environment led by cost inflation and supply chain disruptions. We expect these pressures to continue in the fourth quarter," said CEO Mark Smucker.
  • Outlook: J M Smucker narrowed the FY22 adjusted EPS outlook to $8.35 - $8.65 (prior view $8.35 - $8.75) versus the consensus of $8.57.
  • The company also cut FY22 sales growth guidance to (1.5)% - (0.5)% from the prior view of (1.0)% - 0.0%.
  • Price Action: SJM shares are trading lower by 5.70% at $127.07 on the last check Tuesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversTrading IdeasBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!