NYSE$SJM

JM Smucker Co · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Smucker's third quarter of fiscal year 2024 experienced sales growth, driven by strategic priorities and the acquisition of Hostess Brands, while also updating the full-year financial outlook.

The J.M. Smucker Co. reported a 1% increase in net sales, with a 6% increase excluding acquisitions, divestitures, and foreign currency exchange. Adjusted earnings per share increased by 12% to $2.48. The company updated its full-year fiscal 2024 financial outlook and completed the acquisition of Hostess Brands.

  • Net sales increased by 1%, with a 6% increase excluding the impact of acquisitions, divestitures, and foreign currency exchange.
  • Adjusted earnings per share rose by 12% to $2.48.
  • Free cash flow was $249.6 million, compared to $442.7 million in the prior year.
  • The company updated its full-year fiscal 2024 financial outlook, expecting comparable net sales to increase by 8.75%.

Headline financials

Total Revenue

$2.23B

Previous: $2.22B+0.6%
EPS

$1.13

Previous: $2.21-48.9%
U.S. Retail Pet Foods Margin

23.5%

Previous: 14.4%+63.2%
Sweet Baked Snacks Margin

22.6%

No prior period
Gross Margin

36.9%

Previous: 34.1%+8.2%
U.S. Retail Coffee Margin

28.6%

Previous: 27.8%+2.9%
Capital Expenditures

-$456M

Previous: -$332M-37.2%
Free Cash Flow

$345M

Previous: $418M-17.4%
Net Income

$120M

Previous: $209M-42.3%
Operating Income

$297M

Previous: $318M-6.4%
Gross Profit

$823M

Previous: $756M+8.9%
Total Assets

$20.2B

Previous: $16B+26.4%
Stock-Based Comp

$2.2M

Previous: $6M-63.3%

Revenue & EPS history

Smucker · Revenue · Quarterly

$2.23B

Q3 2024+0.6%vs Q3 2023
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Smucker · $2.15B total across 5 segments · Q4 2026

  • U.S. Retail Coffee
    $831M
  • U.S. Retail Frozen Handheld and Spreads
    $454M
  • U.S. Retail Pet Foods
    $402M
  • Sweet Baked Snacks
    $237M
  • Away From Home
    $228M

Forward guidance

The Company updated its full-year fiscal 2024 guidance. Comparable net sales are expected to increase approximately 8.75 percent compared to the prior year. Adjusted earnings per share is expected to range from $9.45 to $9.65. Free cash flow is expected to be approximately $500.0 million with capital expenditures of $610.0 million.

Tailwinds

  • Comparable net sales increase vs prior year: 8.75%
  • Adjusted earnings per share: $9.45 - $9.65
  • Adjusted effective income tax rate: 24.6 %
  • Underlying business momentum is expected to continue.
  • Higher net pricing is expected to support sales growth.

Headwinds

  • Net sales are expected to decrease 3.6% compared to the prior year, including the acquisition of Hostess Brands.
  • Free cash flow (in millions): $500
  • Capital expenditures (in millions): $610
  • Stranded overhead from the pet food divestiture will have a net unfavorable impact of approximately $0.60 on adjusted earnings per share.
  • The Hostess Brands acquisition is expected to have a net unfavorable impact of approximately $0.40 on adjusted earnings per share, including incremental profits offset by incremental expenses and interest.

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 2024

Historical avgQ3 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%

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