NYSE$SJM

JM Smucker Co · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Second quarter results for fiscal year 2022 reflected an increase in net sales and adjusted earnings per share.

Smucker's second quarter results exceeded expectations with an 8 percent increase in comparable net sales. The company updated its full-year fiscal 2022 financial outlook, increasing net sales and adjusted earnings per share expectations despite rising cost inflation and supply chain disruption.

  • Net sales increased $16.0 million, or 1 percent. Net sales excluding divestitures and foreign currency exchange increased 8 percent.
  • Net income per diluted share was $1.90, a decrease of 6 percent. Adjusted earnings per share was $2.43, an increase of 2 percent.
  • Cash from operations was $165.1 million, a decrease of 56 percent.
  • Free cash flow was $105.9 million, compared to $326.3 million in the prior year.

Headline financials

Total Revenue

$2.05B

Previous: $2.03B+0.8%
EPS (adj)

$2.43

Previous: $2.39+1.7%
U.S. Retail Pet Foods Margin

14.2%

Previous: 17.6%-19.3%
Sweet Baked Snacks Margin

25.2%

Previous: 28.2%-10.6%
Gross Margin

34.7%

Previous: 40.2%-13.7%
U.S. Retail Coffee Margin

32.2%

Previous: 34.0%-5.3%
Capital Expenditures

-$127M

Previous: -$129M+1.4%
Free Cash Flow

$176M

Previous: $659M-73.3%
Net Income

$206M

Previous: $231M-10.7%
Operating Income

$312M

Previous: $381M-18.1%
Gross Profit

$712M

Previous: $818M-13.0%
Cash & Equivalents

$155M

Previous: $406M-61.7%
Total Assets

$16.2B

Previous: $16.9B-4.1%
Stock-Based Comp

$5.3M

Previous: $7.5M-29.3%

Revenue & EPS history

Smucker · Revenue · Quarterly

$2.05B

Q2 2022+0.8%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Smucker · $1.61B total across 3 segments · Q2 2022

  • U.S. Retail Pet Foods
    $702M-1.0%
  • U.S. Retail Coffee
    $645M+8.5%
  • Away From Home
    $262M+4.2%

Forward guidance

The Company updated its full-year fiscal 2022 guidance. Net sales are expected to range from down 0.5 percent to up 0.5 percent compared to the prior year. Adjusted earnings per share is expected to range from $8.35 to $8.75, and free cash flow is expected to be approximately $700 million.

Tailwinds

  • Net sales are expected to increase approximately 4.5 percent at the mid-point of the net sales guidance range on a comparable basis.
  • Continued double-digit net sales growth for the Smucker's® Uncrustables® brand.
  • A recovery in away from home channels is expected.
  • The increase in net sales guidance reflects stronger than anticipated demand in the second quarter and remainder of the year.
  • Incremental net pricing actions in the remainder of the fiscal year in response to higher costs.

Headwinds

  • The pandemic and related implications, along with cost inflation and volatility in supply chains, continue to impact financial results and cause uncertainty and risk for the fiscal year 2022 outlook.
  • Any manufacturing or supply chain disruption, inclusive of any labor shortages, whether related to illness, vaccine requirements, or other factors, could materially impact actual results.
  • Changes in consumer mobility and purchasing behavior could materially impact actual results.
  • Retailer inventory levels could materially impact actual results.
  • Macroeconomic conditions could materially impact actual results.

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 Q2 2022

Historical avgQ2 2022

+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%

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