雅虎香港財經 The J.M. Smucker (SJM) to Post Q4 Earnings: Is a Beat Likely?
The J. M. Smucker Company SJM is likely to register top-line growth when it reports fourth-quarter fiscal 2024 earnings on Jun 6. The Zacks Consensus Estimate for revenues is pegged at $2.25 billion, which suggests an increase of 0.5% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has decreased by 1 cent in the past 30 days to $2.32 per share. This indicates a decline of 12.1% from the year-ago quarter’s reported figure. SJM has a trailing four-quarter earnings surprise of 7.5%, on average.
Factors to Note
The J. M. Smucker has been benefiting from the sustained demand across brands and categories. The company has been progressing well with core priorities, which include driving commercial excellence, reshaping its portfolio, streamlining the cost structure and unleashing its organization to win. Strength in such strategies has been helping the company improve in-store fundamentals and stock performance for the brands.
The J. M. Smucker has also been experiencing gains from positive net price realization, which has been working well for its comparable sales. Fourth-quarter comparable sales are expected to increase in the mid-single digits.
The J. M. Smucker Company Price, Consensus and EPS Surprise
The J. M. Smucker Company price-consensus-eps-surprise-chart | The J. M. Smucker Company Quote
However, overall net sales are likely to reflect the impacts of recent divestitures. The company divested the Canadian condiments business in January 2024 and Sahale Snacks in November 2023. That said, the acquisition of the premier snacking company, Hostess Brands (November 2023), is likely to have positively contributed to net sales.
The J. M. Smucker has been incurring high selling, distribution and administrative (SD&A) costs. Management expects a fourth-quarter adjusted EPS decline in a mid-teens percentage, mainly due to pre-production expenses of nearly $20 million associated with the new Uncrustables facility, along with additional marketing investments.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for The J. M. Smucker this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
The J. M. Smucker currently carries a Zacks Rank #3, and it has an Earnings ESP of +0.44%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some more companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
PepsiCo, Inc. PEP currently has an Earnings ESP of +0.15% and a Zacks Rank of 2. The company is likely to register a top-and-bottom-line increase when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for PepsiCo’s quarterly revenues is pegged at $22.7 billion, which implies growth of 1.6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, the Zacks Consensus Estimate for PepsiCo’s quarterly earnings of $2.16 suggests an increase of 3.4% from the year-ago quarter’s levels. PEP has a trailing four-quarter earnings surprise of 5.1%, on average.
Constellation Brands STZ currently has an Earnings ESP of +1.52% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share is pegged at $3.49, which suggests 19.9% growth year over year.
The Zacks Consensus Estimate for Constellation Brands’ quarterly revenues is pegged at $2.69 billion, which indicates growth of 6.8% from the figure reported in the prior-year quarter. STZ has a trailing four-quarter earnings surprise of 6.3%, on average.
General Mills GIS currently has an Earnings ESP of +0.56% and a Zacks Rank #3. The company is likely to register a decrease in the top line when it reports fourth-quarter fiscal 2024 numbers. The consensus mark for revenues is pegged at $4.88 billion, which implies a decline of 2.9% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for General Mills’ quarterly earnings per share of 99 cents suggests an 11.6% drop from the year-ago quarter. GIS has a trailing four-quarter earnings surprise of 7.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Mills, Inc. (GIS) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
