
J.M. Smucker (SJM) Stock Rises on Earnings Beat
NEW YORK (TheStreet) -- The J.M. Smucker Co. (SJM) - Get Report stock is up 0.55% to $114 in pre-market trading on Thursday morning after the company reported earnings that exceeded expectations and revenue that met estimates for the fiscal 2016 second quarter.
The company reported earnings of $1.62 per share for the quarter ended October 31, beating estimated by 11 cents.
Revenue increased 40% year-over-year to $2.08 billion, in line with estimates. Revenue growth was driven by the acquisition of Big Heart, a pet food business that J.M. Smucker bought for about $6 billion in March.
"We are pleased to have delivered another quarter of solid financial results, which reflects the momentum we are seeing across our businesses," CEO Richard Smucker said in a statement. "Much of our net sales growth is coming from the addition of the pet food business which continues to perform well."
Retail coffee sales contributed 13 percentage points to overall growth because of the successful launch of Dunkin Donuts (DNKN) branded K-Cup pods and volume growth from the Folgers brand.
Additionally, J.M. Smucker's increased its 2016 fiscal year earnings guidance to $5.70 to $5.80 per share, from the previous outlook of $5.65 to $5.80 per share.
Revenue guidance was lowered to $7.9 billion for the full year from $8 billion.
Separately, TheStreet Ratings team rates SMUCKER (JM) CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate 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 revenue growth, good cash flow from operations, expanding profit margins, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: SJM
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