NYSE$SJM

JM Smucker Co · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Smucker's Q4 2020 earnings were driven by increased consumer demand resulting from the COVID-19 pandemic, with record-setting net sales and adjusted earnings per share.

Smucker's Q4 2020 net sales increased by 10% due to higher consumer demand from the COVID-19 pandemic. Net income per diluted share was $1.98, while adjusted earnings per share increased by 24% to $2.57. The company provided its fiscal 2021 outlook, expecting a net sales decline of 1 to 2 percent and adjusted earnings per share to range from $7.90 to $8.30.

  • Net sales increased by 10% due to increased consumer demand resulting from the COVID-19 pandemic.
  • Net income per diluted share was $1.98, with adjusted earnings per share at $2.57, a 24% increase.
  • Cash from operations was $287.7 million, compared to $274.2 million in the prior year.
  • The company anticipates increased at-home consumption to continue during the beginning of fiscal year 2021, though at a more moderate rate.

Headline financials

Total Revenue

$2.09B

Previous: $1.9B+10.0%
EPS (adj)

$2.57

Previous: $2.08+23.6%
U.S. Retail Pet Foods Margin

19.5%

Previous: 18.2%+7.1%
Sweet Baked Snacks Margin

27.7%

Previous: 20.0%+38.5%
Gross Margin

37.7%

Previous: 36.4%+3.6%
U.S. Retail Coffee Margin

32.7%

Previous: 32.4%+0.9%
Capital Expenditures

$76.4M

Previous: $92.6M-17.5%
Free Cash Flow

$211M

Previous: $182M+16.4%
Net Income

$226M

Previous: $71.5M+216.5%
Operating Income

$347M

Previous: $154M+125.7%
Gross Profit

$788M

Previous: $692M+13.9%
Cash & Equivalents

$391M

Previous: $101M+286.1%
Total Assets

$17B

Previous: $16.7B+1.6%
Stock-Based Comp

$7M

Previous: $4.2M+66.7%

Revenue & EPS history

Smucker · Revenue · Quarterly

$2.09B

Q4 2020+10%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Smucker · $1.61B total across 3 segments · Q4 2020

  • U.S. Retail Pet Foods
    $768M+6.5%
  • U.S. Retail Coffee
    $582M+10.5%
  • Away From Home
    $262M+0.4%

Forward guidance

The Company provided its full-year fiscal 2021 guidance as summarized below: Net sales are expected to decrease 1 to 2 percent compared to the prior year. Adjusted earnings per share is expected to range from $7.90 to $8.30. Free cash flow is expected to range from approximately $900 to $950 million.

Tailwinds

  • Focus on meeting demand needs created by the current environment.
  • Continued execution against strategic priorities to position the business for long-term growth.
  • Adjusted earnings per share is expected to range from $7.90 to $8.30.
  • Adjusted gross profit margin of approximately 37.5 percent.
  • Free cash flow is expected to range from approximately $900 to $950 million.

Headwinds

  • Net sales are expected to decrease 1 to 2 percent compared to the prior year.
  • Decline reflects lapping the $185 million of incremental net sales in the fourth quarter of fiscal year 2020.
  • An estimated $120 million COVID-related reduction to fiscal year 2021 net sales primarily resulting from a significant and extended decline in the Company's Away From Home business.
  • Effective tax rate 24.0 %
  • Outbreak of COVID-19 has caused significant uncertainty for fiscal year 2021 projections.

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 Q4 2020

Historical avgQ4 2020

+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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