J.M. Smucker tops analysts’ estimates for earnings and revenue in the fourth quarter

J.M. Smucker (NYSE: SJM) released its quarterly financial results on Thursday that posted a 10% increase in sales in the fourth quarter. The company attributed its upbeat performance to customers stockpiling on comfort food ahead of the strict COVID-19 restrictions. J.M. Smucker recently named Rob Ferguson as the General Manager of its Pet Food & Pet Snacks business.

Despite a stronger than expected earnings report, the food company was reported downbeat in premarket trading on Thursday. At £88.44 per share, the American company is roughly 10% up year to date in the stock market after recovering from £77 per share in March. In comparison, the benchmark S&P 500 index has seen an about 3% decline in 2020 so far. Learn more about how to choose winning stocks.

J.M. Smucker’s Q4 financial results versus analysts’ estimates

According to Refinitiv, analysts had forecast the company to print £1.64 billion in revenue in the fourth quarter. Their estimate for adjusted earnings per share (EPS) was capped at £1.83. In its report on Thursday, J.M. Smucker topped both estimates posting a higher £1.67 billion in revenue and £2.05 of adjusted earnings per share in Q4.

CEO Mark Smucker commented on the earnings report on Thursday and said:

“Smucker’s solid response to the pandemic is reflected in our exceptional fourth-quarter results, with record-setting net sales and adjusted earnings per share. This exceptional growth is a testament to the strength of our brands and consumer-centric strategy, as consumers turned to trusted products to stock their kitchens as stay-at-home orders were implemented across North America.”

J.M. Smucker’s financial guidance for fiscal 2021

Smucker’s Q4 results were particularly more positive as compared to the same quarter last year with it booked a goodwill charge worth £78 million.

In terms of individual units, Smucker noted a 22% year over year increase in the U.S. retail consumer foods sales, an 11% increase in the U.S. retail coffee sales, and a 6% increase in the retail pet food sales.

In the full financial year, Smucker generated £6.22 billion worth of sales and made £5.45 of earnings per share. For fiscal 2021, the Orrville-headquartered company said it now expects £6.30 to £6.62 of adjusted earnings per share and a 1% to 2% slump in sales.

Smucker also performed slightly upbeat in the stock market last year with an annual increase of about 10%. At the time of writing, the U.S. company has a market cap of £10.08 billion and a price to earnings ratio of 20.23.