The J. M. Smucker Company (SJM), headquartered in Orrville, Ohio, is a leading manufacturer and marketer of branded food products, primarily in the U.S. and Canada. Commanding a market cap of $10.9 billion, the company is best known for its iconic fruit spreads, including Smucker's jams and jellies. It is expected to announce its fiscal third-quarter earnings for 2025 on Tuesday, Feb. 25.
Ahead of the event, analysts expect SJM to report a profit of $2.36 per share on a diluted basis, down 4.8% from $2.48 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in all of its last four quarterly reports. Its EPS of $2.76 in the recent quarter surpassed the consensus estimate by 10%.
For fiscal 2025, analysts expect SJM to report an EPS of $9.89, down marginally from $9.94 in fiscal 2023. Nevertheless, its EPS is expected to rebound in 2026, rising 6.1% year over year to $10.49.
SJM stock has plummeted 19.9% over the past year, significantly trailing the S&P 500’s ($SPX) 25% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.7% gains over the same time frame.
J. M. Smucker’s shares have underperformed the broader market over the past year due to a decline in its coffee segment from rising competition and supply chain issues. Additionally, the company has faced cash flow concerns, with reduced cash from operations and a lower cash balance, raising doubts about future investments and dividend sustainability.
On Nov. 26, SJM shares jumped over 5% after reporting its Q2 results. While its adjusted EPS of $2.76 surpassed Wall Street expectations of $2.51, the company’s revenue was $2.3 billion, matching Wall Street forecasts. SJM expects full-year adjusted EPS to be between $9.70 and $10.10.
Analysts’ consensus opinion on SJM stock is skeptical, with a “Hold” rating overall. Out of 14 analysts covering the stock, three advise a “Strong Buy” rating, 10 recommend a “Hold,” and the remaining analyst appoints it a “Strong Sell.”
The average analyst price target for SJM is $126.86, indicating a 22.6% potential upside from the current levels.
