J M Smucker Co (NYSE:SJM) on August 23, 2016 announced results for the first quarter ended July 31, 2016, of its 2017 fiscal year. J.M. Smucker's revenue for the quarter was down 7.0% compared to the same quarter previous year.
Analysts are expecting Toll Brothers Inc (NYSE: TOL) to have earned $0.61 per share on revenue of $1.25 billion in the latest quarter.
Backing out forex and Smucker's noncomparable divested business, net sales still declined some 5% thanks to lower prices across the board (mostly in coffee) and an "unfavorable volume/mix" in its American pet foods business. Deutsche Bank AG restated a "buy" rating and set a $143.00 price target (up previously from $137.00) on shares of J.M. Smucker in a report on Friday, June 3rd.
Insider Activity: Corporate insiders look pessimistic about the outlook of the company stock that they seem to offload shares while they have 18.24 jumped so far this year.
- Net sales of USA retail coffee are down 9 percent, to $513.3 million, compared with the first quarter of past year, because the company twice cut retail prices by 6 percent because its commodity costs dropped.
CEO Mark T. Smucker said the company already is moving on opportunities to provide future growth in the pet food business. We still believe our less optimistic take on the firm's ability to weather rising center-store competition amid normalizing input costs is at the heart of the gap between our valuation and prevailing trading.
Smucker's U.S. Retail Coffee sales fell 9% during the quarter.
Company latest quarter ended on 30 April 2016, company announced earnings of $1.44. As for the United States retail consumer foods division, net sales fell 8% to $537 million, mainly due to the divested U.S. canned milk operations. Excluding the impact of the US canned milk divestiture, net sales were down 2%, reflecting lower net price realization, which was impacted by the timing of certain trade program expenses compared to the prior year. If the divestiture's impact is excluded, overall net sales declined 2%. They are projecting Next Quarter growth of 26.5%. We expect this will help moderate declines for the brand. Unfavorable volume/mix, driven by the U.S. Retail Pet Foods segment, also contributed to lower net sales. The business now accounts for almost a third of the company's sales. The value of the Market cap relatively ensures a stable and secure position for the company, and can be easily considered a blue chip in today's market. "And then of course delivering against or exceeding our synergy and our working capital targets".
That comes even though J.M. Smucker has noted the growth potential for the broader category, with the nation's pet population rising as more millennials and baby boomers adopt pets.
"Specifically, improving the performance of our mainstream dog and cat brands remains a key area of focus", Smucker said in a conference call with analysts.