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On Tuesday, Stifel analysts reiterated a Hold rating for J.M. Smucker stock, maintaining a price target of $120.00. The $11.9 billion market cap company, currently trading at $111.85, appears slightly undervalued according to InvestingPro analysis. The decision comes as the company released its fourth-quarter fiscal year 2025 earnings, reporting earnings per share of $2.31. This figure marks a 13% decrease from the previous year but exceeded both Stifel’s estimate by $0.05 and the consensus estimate by $0.07. While the company wasn’t profitable over the last twelve months, InvestingPro data shows analysts expect a return to profitability this year.
J.M. Smucker’s organic sales saw a 1% decline, attributed to a 3% drop in volume/mix, which was partially balanced by a 3 percentage point rise in pricing. The company’s gross margin fell by 280 basis points compared to the previous year, landing at 37.5%, slightly surpassing Stifel’s expectations. Despite these challenges, the company maintains a strong dividend yield of 3.86% and has maintained dividend payments for 55 consecutive years.
The company has provided guidance for fiscal year 2026, projecting net sales growth of approximately 3% at the midpoint, with comparable sales expected to increase by 4.5%. Earnings per share are anticipated to range between $8.50 and $9.50, representing an 11% decline at the midpoint.
J.M. Smucker also announced another impairment in its Sweet Baked Snacks business, which includes Hostess products, and revised its long-term revenue growth target down to 3%. The company has scheduled a Q&A call at 9:00 am ET to further discuss its financial results and outlook.
In other recent news, J.M. Smucker Company reported its fourth-quarter earnings for fiscal year 2025, showing a mixed financial performance. The company exceeded earnings per share (EPS) expectations, reporting $2.31 against a forecast of $2.24. However, revenue fell short, reaching $2.1 billion compared to the expected $2.18 billion. This revenue miss is attributed to challenges in the pet food segment and broader market pressures. Despite the revenue shortfall, product innovations contributed over $100 million in net sales, with strong growth from Uncrustables and Cafe Bustelo. Looking forward, J.M. Smucker projects a 2-4% increase in net sales for fiscal 2026, with adjusted EPS guidance set between $8.50 and $9.50. The company remains focused on key growth platforms like Uncrustables and Cafe Bustelo, anticipating these to drive 80% of growth over the next five years. CEO Mark Smucker emphasized innovation efforts, expressing confidence in future growth, particularly for the Uncrustables brand.
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