This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

J.M. Smucker (SJM) Slides on Shrinking Sales

Stocks in this article: SJM

NEW YORK (TheStreet) -- J.M. Smucker  (SJM) disappointed Wall Street after falling prices across its products failed to inspire increased consumer spending. By early afternoon, shares toppled 6.7% to $101.32.

The owner of Folgers coffee, Jif peanut butter and Smucker's jams recorded second-quarter net income of $1.52 a share, 8 cents lower than analysts surveyed by Thomson Reuters estimated.

Revenue of $1.56 billion, 4% lower than a year earlier, missed consensus by $50 million. Smucker slashed prices on many of its products because of decreased commodity prices particularly for coffee and peanuts, but this failed to significantly increase sales volume.

Volume gains were seen in its Crisco oils, Jif peanut butter and Smucker's fruit spreads segments, offsetting weakness in sales of flour and canned milk. In its retail coffee segment, revenue fell 4%, due to price cuts, despite a 1% increase in volume sales for Folgers and 11% gain for Dunkin' Donuts-branded coffee.

"The benefit of lower commodity costs has provided us with the flexibility to further support our value proposition. We believe we have this combination solidly in place for the holiday season and beyond," said Chief Operating Officer Vince Byrd in a statement.

For the full year ending April, the Orville, Ohio-based business said it expects net sales to fall 2%. The company previously forecast a sales decline of 1%. Earnings are expected in the range of $5.72 to $5.82 a share, lower than analysts' expectations of $5.84 a share.

TheStreet Ratings team rates J.M. Smucker (JM) CO as a Buy with a ratings score of A. The team has this to say about its recommendation:

"We rate J.M. Smucker (JM) CO (SJM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, expanding profit margins, increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs