JM Smucker First Quarter Earnings Sneak Peek
JM Smucker Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of 99 cents per share, a decline of 11.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.06. Between one and three months ago, the average estimate moved down. It has been unchanged at 99 cents during the last month. For the year, analysts are projecting profit of $5.10 per share, a rise of 7.8% from last year.
Past Earnings Performance: Last quarter, the company topped expectations by 11 cents, coming in at net income of $1.10 per share versus a mean estimate of profit of 99 cents per share. This followed two straight quarters of missing estimates.
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A Look Back: In the fourth quarter of the last fiscal year, profit rose 9.7% to $104.1 million (94 cents a share) from $94.9 million (82 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 14.2% to $1.36 billion from $1.19 billion.
Wall St. Revenue Expectations: Analysts are projecting a rise of 9.2% in revenue from the year-earlier quarter to $1.3 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.66 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.65 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 24.8% to $617 million while assets decreased 9% to $1.64 billion.
With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 14.5% over the last four quarters.
Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the second quarter of the last fiscal year and third quarter of the last fiscal year, profit rose in the fourth quarter of the last fiscal year.
Stock Price Performance: Between June 15, 2012 and August 13, 2012, the stock price had risen $2.14 (2.8%), from $75.77 to $77.91. The stock price saw one of its best stretches over the last year between March 14, 2012 and April 2, 2012, when shares rose for 14 straight days, increasing 7.2% (+$5.45) over that span. It saw one of its worst periods between April 2, 2012 and April 16, 2012 when shares fell for 10 straight days, dropping 3.2% (-$2.63) over that span.
Analyst Ratings: With seven analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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