NYSE$SJM

JM Smucker Co · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Smucker's Q3 2022 results reflected organic net sales growth, driven by key platforms of pet, coffee, and snacking, while navigating cost inflation and supply chain disruptions.

Smucker Co. announced Q3 2022 results with a 1% decrease in net sales, but a 4% increase excluding divestitures and foreign currency exchange. Net income per diluted share decreased by 72% due to an intangible asset impairment charge, while adjusted earnings per share decreased by 5%. The company updated its full-year fiscal 2022 financial outlook, expecting continued cost inflation and supply chain disruptions.

  • Net sales decreased by 1%, but increased by 4% excluding divestitures and foreign currency exchange.
  • Net income per diluted share decreased by 72%, primarily due to a noncash intangible asset impairment charge.
  • Adjusted earnings per share decreased by 5%.
  • Free cash flow was $322.4 million, compared to $416.6 million in the prior year.

Headline financials

Total Revenue

$2.06B

Previous: $2.08B-0.9%
EPS (adj)

$2.33

Previous: $2.45-4.9%
U.S. Retail Pet Foods Margin

13.7%

Previous: 17.6%-22.2%
Sweet Baked Snacks Margin

23.0%

Previous: 24.8%-7.3%
Gross Margin

33.2%

Previous: 39.0%-14.9%
U.S. Retail Coffee Margin

32.2%

Previous: 33.7%-4.5%
Capital Expenditures

-$245M

Previous: -$199M-23.0%
Free Cash Flow

$498M

Previous: $1.08B-53.7%
Net Income

$69.7M

Previous: $262M-73.3%
Operating Income

$151M

Previous: $406M-62.9%
Gross Profit

$683M

Previous: $809M-15.6%
Cash & Equivalents

$284M

Previous: $502M-43.3%
Total Assets

$16B

Previous: $16.4B-2.8%
Stock-Based Comp

$4.6M

Previous: $7.5M-38.7%

Revenue & EPS history

Smucker · Revenue · Quarterly

$2.06B

Q3 2022-0.9%vs Q3 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Smucker · $1.62B total across 3 segments · Q3 2022

  • U.S. Retail Pet Foods
    $697M-9.4%
  • U.S. Retail Coffee
    $662M+5.7%
  • Away From Home
    $266M+13.2%

Forward guidance

The Company updated its full-year fiscal 2022 guidance. Net sales are expected to range from down 1.5 percent to 0.5 percent compared to the prior year. Adjusted earnings per share is expected to range from $8.35 to $8.65. Free cash flow is expected to be approximately $700 million, with capital expenditures of $400 million.

Tailwinds

  • Net sales are expected to increase approximately 4.5 percent on a comparable basis.
  • Continued double-digit net sales growth for the Smucker's® Uncrustables® brand.
  • Recovery in away from home channels.
  • Adjusted earnings per share is expected to range from $8.35 to $8.65.
  • Free cash flow is expected to be approximately $700 million.

Headwinds

  • The pandemic and related implications continue to impact financial results.
  • Cost inflation continues to impact financial results.
  • Volatility in supply chains continues to impact financial results.
  • A deceleration in at-home consumption trends is expected.
  • SD&A expenses are expected to be down approximately 10 percent compared to the prior year.

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 Q3 2022

Historical avgQ3 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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