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J. M. Smucker Company (SJM)

  • Thu, Aug. 27, 9:43 AM
    • J.M. Smucker (NYSE:SJM) reports net sales rose 47% in FQ1 due to acquisition of Big Heart Pet Brands and the Company's U.S. retail launch of Dunkin' Donuts K-Cup pods.
    • Excluding the acquisition and currency impact net sales increased 6% for the period.
    • Revenue by segment: U.S. Retail Coffee: $565M (+12%); U.S. Retail Consumer Foods: $582.2M (flat); U.S. Retail Pet Foods: $549.9M; International and Foodservice: $254.9M (+7%).
    • Adjusted gross margin rate grew 20 bps to 38%.
    • Adjusted operating margin rate fell 130 bps to 15.5%.
    • EBITDA margin remained constant Y/Y at 19.3%.
    • Total SG&A expenses rate +80 bps to 19.9%.
    • FY2016 Guidance: Net sales: $8B; Non-GAAP EPS: $5.65 - $5.80; Adjusted non-GAAP EPS: $6.80 - $6.95; Free cash flow: $900M; Capex: $200M.
    | Thu, Aug. 27, 9:43 AM | Comment!
  • Thu, Jul. 9, 6:15 PM
    • J.M. Smucker (NYSE:SJM) plans to sell 4.92M shares on behalf of a firm linked to Centerview Capital and AlpInvest, two of Big Heart Pet Brands' former P-E owners.
    • SJM bought Big Heart for 17.9M shares, $1.3B in cash, and the assumption of $2.6B in debt. Shares -1.7% AH to $106.50.
    | Thu, Jul. 9, 6:15 PM | Comment!
  • Mon, Jul. 6, 2:14 PM
    • Keurig Green Mountain (GMCR -3.6%) is slammed after SunTrust cut its stock price target to $70 from $95, citing a loss of market share to the likes of Kraft Heinz (KHC), JM Smucker (NYSE:SJM) and Starbuck (NASDAQ:SBUX).
    • The firm thinks GMCR will need to address share losses for its company-owned brands sooner rather than later, which will pressure earnings; market share for GMCR-owned brands have dropped to 28% from 35% over the past year and posted a 5% sales decline and 12% volume decline in the most recent four-week period, according to Nielsen, lost to GMCR’s licensed partners which have stronger brands and are promoting their products more than GMCR.
    • SunTrust says it does not believe GMCR wants simply to be a contract manufacturer for the industry; GMCR will need to step up promotions in the coming months while working through its higher-cost coffee hedges, which the firm cites as the key reason behind its FY 2015 earnings reduction.
    | Mon, Jul. 6, 2:14 PM | 5 Comments
  • Thu, Mar. 26, 12:37 PM
    • Deutsche Bank thinks 3G Capital will be back in the food sector for a major acquisition faster than some other investment firms anticipate.
    • 3G put itself in a stronger position to make a major purchase by not adding debt in the Kraft deal.
    • Analyst Eric Katzman sees some food names trading with a premium as the 3G shadow hangs over the sector, while others have downside risk with M&A speculation not making as much sense.
    • Premium on: ConAgra (NYSE:CAG), General Mills (NYSE:GIS), Mondelez International (NASDAQ:MDLZ), Pinnacle Foods (NYSE:PF), PepsiCo (NYSE:PEP).
    • Premium off: Campbell Soup (NYSE:CPB), Hershey (NYSE:HSY), Hormel (NYSE:HRL), Kellogg (NYSE:K), J.M. Smucker (NYSE:SJM).
    • Previously: Investors snapping up food stocks (Mar. 25 2015)
    • Previously: Beer fallout from Kraft buyout (Mar. 25 2015)
    • Previously: Kraft-Heinz merger has a few ETFs on the move (Mar. 25 2015)
    | Thu, Mar. 26, 12:37 PM | 11 Comments
  • Thu, Feb. 26, 10:42 AM
    • Shares of J.M. Smucker (SJM +1%) and Dunkin Brands' (DNKN +2.9%) are both higher after the two companies sign a deal to broaden distribution for Dunkin' Donuts K-cups.
    • J.M. Smucker is handling distribution to grocery stores and club chains, while Keurig Green Mountain (GMCR -0.1%) will cover office supply stores and specialty stores.
    • Perhaps the most important aspect of the new distribution deal is that Dunkin' K-Cup packs will now be sold online.
    • The K-cup shakeup isn't expected by most analysts to have a major impact on Starbucks (SBUX +0.2%) which is also a Keurig partner. Smaller coffee brands could suffer though.
    | Thu, Feb. 26, 10:42 AM | 5 Comments
  • Wed, Feb. 4, 9:13 AM
    | Wed, Feb. 4, 9:13 AM | 11 Comments
  • Tue, Feb. 3, 4:57 PM
    • J.M. Smucker (NYSE:SJM) is acquiring Big Heart Pet Brands from its P-E owners for 17.9M shares, $1.3B in cash, and $2.6B in debt that will be refinanced (total consideration of $5.8B). For reference, Smucker closed today with a $10.7B market cap.
    • Big Heart, known as Del Monte before unloading its consumer products ops, owns the Meow Mix, Kibbles 'n Bits, Milk-Bone, and Natural Balance pet food brands, among others.
    • The deal is expected to close by the end of Big Heart's FY15 (ends on May 3). Following its closing Big Heart CEO Dave West will serve as the the president of Smucker's pet food ops.
    • Smucker has risen to $110.75 in AH trading, making new 52-week highs along the way.
    | Tue, Feb. 3, 4:57 PM | 5 Comments
  • Nov. 12, 2014, 8:23 AM
    • J.M. Smucker (NYSE:SJM) announces that it expects FQ2 sales to show a 5% decline.
    • The company's results were impacted by weak demand in the U.S. Retail Coffee segment - particularly with the Folgers brand which had a price increase pushed through earlier this year.
    • The coffee sales slowdown coincides with higher input costs for green coffee.
    • Guidance: FY15 sales growth of -1% forecast vs. a prior outlook for a 3% to 4% increase.
    • SJM -4.7% premarket.
    | Nov. 12, 2014, 8:23 AM | 2 Comments
  • May 27, 2014, 7:28 AM
    • A $6.4B offer by Pilgrim Pride's (PPC) to buy Hillshire Brands (HSH) could rattle the food sector.
    • For starters, the deal could spoil Hillshire's offer on the table to buy Pinnacle Foods (PF).
    • The quick analyst take on a PPC-HSH combination is favorable with the companies focused in different areas (chicken vs. packaged meat) which could lead to easy access to new distribution channels.
    • Premarket: HSH +22.9% to $45.49, PF -5.3% to $31.50.
    • Also on merger watch in the food sector: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K CAG
    | May 27, 2014, 7:28 AM | 2 Comments
  • May 7, 2014, 4:33 PM
    • Keurig Green Mountain (GMCR) +6.4% AH as FQ2 earnings and revenues beat estimates, buoyed by strong coffee sales and cost cuts.
    • Sales of single-serve packs rose 13% to $898M, while sales of brewers and accessories rose 8.5%.
    • FQ2 gross profit increased 10% and gross margin improved to 41.5% from 41.3%.
    • Sees FY 2014 EPS of $3.63-$3.73 vs $3.72 analyst consensus estimate; sees revenues in the high single digits.
    • Says it is expanding its partnership with J.M. Smucker (SJM) with a multi-year agreement to make and sell Folgers and other SJM brands in formats that work with new Keurig brewing systems.
    • Authorizes a new share repurchase program of up to $1B over the next two years.
    | May 7, 2014, 4:33 PM | 2 Comments
  • Apr. 7, 2014, 11:01 AM
    • A number of food stocks are moving higher on talk of consolidation in the sector.
    • Kellogg (K +1.7%) is front and center of most of the chatter, while General Mills (GIS +1.4%), Pinnacle Foods (PF +0.8%), and J.M. Smucker (SJM +0.7%) are also in the mix.
    | Apr. 7, 2014, 11:01 AM | Comment!
  • Nov. 12, 2013, 9:59 AM
    • Margin worries at Dean Foods (DF -7.6%) is affecting sentiment over a number of other packaged foods companies in early trading.
    • Though the company warned specifically on the dairy commodity environment, its drop in guidance on Q4 "challenges" looks a bit broader.
    • Underperformers: KRFT -0.7%, SJM -1.0%, HAIN -1.0%, CAG -0.5%, CPB -1.0%, TSN -0.6%.
    | Nov. 12, 2013, 9:59 AM | Comment!
  • Sep. 19, 2013, 12:01 PM
    • Food stocks are out of favor after ConAgra (CAG -3.9%) disappoints with its FQ1 report and General Mills (GIS -2.8%) is downgraded by Wells Fargo.
    • A general theme is emerging out of the sector that consumers in the U.S. are trading down from higher prices.
    • Decliners: Kraft Foods (KRFT) -2.8%, J.M. Smucker (SJM) -1.1%, TreeHouse Foods (THS) -2.6%, Pinnacle Foods (PF) -1.7%, B&G Foods (BGS) -1.0%.
    • Related ETFs: PBJ
    | Sep. 19, 2013, 12:01 PM | 2 Comments
  • Jun. 7, 2013, 11:06 AM
    Like Deutsche Bank (previous), Gabelli is positive on J.M. Smucker (SJM +2.9%) post-earnings, upgrading the shares to Buy from Hold citing the possibility that cost savings and lower input costs will serve as earnings catalysts going forward.
    | Jun. 7, 2013, 11:06 AM | Comment!
  • Jun. 6, 2013, 2:57 PM
    "Talk amongst yourselves." Deutsche Bank sees too much coffee talk surrounding J.M. Smucker's (SJM -4.1%) quarterly report: "The shares tend to be volatile around results as investors fixated on coffee either feel a caffeine high or overly depressed," analyst Eric Katzman says, reiterating a Buy rating and a price target of $109. The bottom line for Katzman: SJM's story is based on "leading brands, share gains, productivity, and a solid balance sheet." (previous)
    | Jun. 6, 2013, 2:57 PM | Comment!
  • Aug. 20, 2012, 10:37 AM
    Shares of J.M. Smucker (SJM +1.6%) trade higher with Deutsche Bank raising its price target on food company to $91 from $86. The extra $5 on the PT doesn't hurt, but SA author Divideninvestr provides a little more meat on the bone for value investors with the take that the low-volatility dividend-payer provides a nice play for the long-term.
    | Aug. 20, 2012, 10:37 AM | 1 Comment
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Company Description
JM Smucker Co manufactures and markets branded food products.