NYSE$SJM

JM Smucker Co · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Smucker's first quarter results reflected a positive start to the fiscal year, with volume growth in every business segment and increased earnings per share expectations.

Smucker's Q1 2024 results showed a decrease in net sales by 4%, but excluding the divestiture and foreign currency exchange, net sales increased by 21%. The company reported net income per diluted share of $1.79 and adjusted earnings per share of $2.21, a 32% increase. Free cash flow was $67.6 million, a significant improvement compared to the previous year.

  • Net sales decreased by 4%, but increased by 21% excluding the divestiture and foreign currency exchange.
  • Net income per diluted share was $1.79, and adjusted earnings per share increased by 32% to $2.21.
  • Cash provided by operations was $217.9 million, and free cash flow was $67.6 million.
  • Full-year fiscal 2024 financial outlook was updated with increased earnings per share expectations.

Headline financials

Total Revenue

$1.81B

Previous: $1.87B-3.6%
EPS (adj)

$2.21

Previous: $1.67+32.3%
Gross Margin

36.3%

Previous: 29.5%+23.1%
Capital Expenditures

-$150M

Previous: -$88.3M-70.2%
Free Cash Flow

$67.6M

Previous: -$127M+153.1%
Net Income

$184M

Previous: $110M+67.2%
Operating Income

$304M

Previous: $180M+68.9%
Gross Profit

$655M

Previous: $553M+18.5%
Cash & Equivalents

$241M

Previous: $152M+59.0%
Total Assets

$14.7B

Previous: $16.3B-9.6%
Stock-Based Comp

$5.1M

Previous: $7.9M-35.4%

Revenue & EPS history

Smucker · Revenue · Quarterly

$1.81B

Q1 2024-3.6%vs Q1 2023
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Smucker · $1.34B total across 3 segments · Q1 2024

  • U.S. Retail Coffee
    $625M+4.5%
  • U.S. Retail Pet Foods
    $441M-39.5%
  • Away From Home
    $275M+17.1%

Forward guidance

The Company updated its full-year fiscal 2024 guidance. Comparable net sales are expected to increase 8.5 to 9.5 percent compared to the prior year. Net sales are expected to decrease 10.0 to 11.0 percent compared to the prior year. Adjusted earnings per share is expected to range from $9.45 to $9.85. Free cash flow is expected to be approximately $650 million with capital expenditures of $550 million.

Tailwinds

  • Comparable net sales are expected to increase 8.5% - 9.5% compared to the prior year.
  • This reflects favorable volume/mix from underlying business momentum.
  • This also reflects higher net pricing.
  • Adjusted earnings per share is expected to range from $9.45 to $9.85.
  • Free cash flow is expected to be approximately $650 million.

Headwinds

  • Net sales are expected to decrease 10.0% to 11.0% compared to the prior year, which reflects $1.5 billion of net sales in the prior year related to the divested pet food brands.
  • Adjusted earnings per share range also reflects a net impact of approximately $0.60 related to stranded overhead from the pet food divestiture, inclusive of income and reimbursements from transition services and contract manufacturing agreements.
  • Guidance assumes an adjusted gross profit margin of approximately 37.0 percent.
  • Guidance assumes an adjusted effective income tax rate of 24.0 percent.
  • Guidance assumes 102.5 million common shares outstanding.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.0%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.1%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+10.6%

Q4 2026

Best reaction

-11.5%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+10.6%+14.8%
Q3 2026+9.8%+5.4%-10.7%
Q2 2026-4.7%-0.1%-4.8%
Q1 2026-4.2%-0.1%-1.2%
Q4 2025+0.0%+0.3%+9.4%
Q3 2025-0.0%+0.6%+6.6%
Q2 2025+3.9%+3.7%-2.4%
Q1 2025-5.7%-5.0%+0.4%
Q4 2024+4.2%+2.4%-0.4%
Q3 2024-2.7%-2.2%+0.5%
Q2 2024+4.7%+6.1%+14.4%
Q1 2024+0.7%-0.3%-12.8%
Q4 2023-0.4%+3.1%-0.3%
Q3 2023-1.9%+1.9%+6.4%
Q2 2023+2.1%+3.5%+8.1%
Q1 2023+4.6%+2.8%+3.1%
Q4 2022+3.4%+4.2%+7.8%
Q3 2022-3.0%-0.7%+0.5%
Q2 2022+4.6%+3.6%+5.2%
Q1 2022-2.9%-2.8%-6.4%
Q4 2021+2.9%+0.7%-4.6%
Q3 2021-1.1%-0.2%+13.5%
Q2 2021+1.7%+0.4%+0.0%
Q1 2021+7.7%+5.9%-1.9%
Q4 2020-6.2%-5.4%-8.4%
Q3 2020-1.5%-0.9%-4.4%
Q2 2020+1.6%+1.9%-0.4%
Q1 2020-7.6%-6.9%-3.3%
Q4 2019-0.6%-1.7%-4.6%
Q3 2019+6.4%+4.3%+14.8%
Q2 2019-5.3%-5.4%-14.0%
Q1 2019-9.0%-9.3%-5.4%
Q4 2018-3.8%-0.6%+4.9%
Q3 2018+1.0%-1.5%+2.6%
Q2 2018+7.2%+6.6%+12.1%
Q1 2018-11.5%-11.9%-12.0%
Q4 2017-2.8%-2.0%-11.8%
Q3 2017+3.0%+2.1%+0.5%
Q2 2017-3.9%-2.3%-0.6%
Q1 2017-8.9%-11.0%-11.8%
Q4 2016+8.7%+8.6%+16.1%
Q3 2016+0.7%
Q2 2016+7.9%
Q1 2016+7.7%
Q4 2015-5.8%
Q3 2015+0.7%
Q2 2015-0.8%
Q1 2015-1.7%
Q4 2014+2.8%
Q3 2014+0.2%
Q2 2014-5.1%
Q1 2014-1.5%
Q4 2013-1.0%
Q3 2013-0.4%
Q2 2013-1.0%
Q1 2013+6.7%
Q4 2012-0.4%
Q3 2012-6.5%
Q2 2012+1.5%
Q1 2012-10.2%
Q4 2009+1.1%
Q4 2011+1.1%
Q3 2011-0.0%
Q3 2010-0.0%
Q2 2011+0.4%
Q2 2010+1.1%
Q1 2010+1.1%
Q4 2010+1.1%
Q1 2011+1.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro