J.M. Smucker Increases Sales but Misses Revenue Estimate

J.M. Smucker (NYSE: SJM  ) reported earnings on Feb. 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q3), J.M. Smucker missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.

Margins shrank across the board.

Revenue details
J.M. Smucker tallied revenue of $1.47 billion. The 12 analysts polled by S&P Capital IQ predicted a top line of $1.54 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $1.31 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $1.22. The 15 earnings estimates compiled by S&P Capital IQ averaged $1.42 per share on the same basis. GAAP EPS of $1.03 for Q3 were 7.2% lower than the prior-year quarter's $1.11 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.5%, 490 basis points worse than the prior-year quarter. Operating margin was 15.8%, 390 basis points worse than the prior-year quarter. Net margin was 8.0%, 210 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $0.99.

Next year's average estimate for revenue is $5.52 billion. The average EPS estimate is $4.68.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 459 members out of 484 rating the stock outperform, and 25 members rating it underperform. Among 159 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 give J.M. Smucker a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on J.M. Smucker is outperform, with an average price target of $81.36.

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