BUZZ-Street View: J.M. Smucker struggles in key snack segments despite cost discipline
J.M. Smucker forecasts annual profit below estimates due to rising coffee costs affecting margins. Analysts rate the stock as "hold" with a median price target of $115. Shares rose ~3% on Wednesday. Despite tariff removal, health trends pressure snack segments. Coffee outperformed, aiding Away From Home business. Analysts see mixed segment performance but expect strong EPS growth and shareholder returns.
J.M. Smucker (SJM.N) on Tuesday forecast annual profit below estimates as surge in coffee costs could squeeze margin
Average rating of 29 analysts is “hold”; median PT is $115 - data compiled by LSEG
Shares up ~3% on Wednesday
TARIFFS GONE, BUT POCKETS OF WEAKNESS REMAIN
Bernstein (“market-perform”; PT: $113) worries health and wellness trends still pressure snacking segment, despite efforts to step up marketing, innovation
Stifel (“hold”; PT: $110) says composition of quarter was slightly different, with softer profit performance for Sweet Baked Snacks, Frozen Handhelds and Spreads segments offset by coffee performance, continued momentum in its Away From Home business
Jefferies (“buy”; PT: $128) says coffee outperformed on better-than-anticipated elasticities, while tariff removal means no winter price increase
Wells Fargo (“buy”; PT: $128) sees strong EPS growth in near future relative to peers, where profit growth visibility is low
William Blair (“market perform”) sees SJM’s diversified portfolio coupled with disciplined cost management, operations execution support a shareholder return opportunity in line with broader market
