The J.M. Smucker to Report Q3 Earnings: What to Expect From SJM?

The J. M. Smucker Company SJM is likely to witness a top and bottom-line decline when it reports third-quarter fiscal 2025 earnings on Feb. 27. The Zacks Consensus Estimate for revenues is pegged at $2.22 billion, indicating a 0.4% drop from the prior-year quarter’s reported figure. The consensus mark for earnings has declined by a penny in the past 30 days to $2.35 per share, which suggests a 5.2% decrease from the figure reported in the year-ago quarter. SJM has a trailing four-quarter earnings surprise of 11.5%, on average.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The J. M. Smucker Company Price, Consensus and EPS Surprise The J. M. Smucker Company price-consensus-eps-surprise-chart | The J. M. Smucker Company QuoteSJM: Key Factors to WatchThe J.M. Smucker is navigating a challenging consumer landscape characterized by inflationary pressures and reduced discretionary spending, which are reshaping purchasing habits. These shifting consumer dynamics are particularly problematic for segments like sweet baked goods, where recovery has been slower than expected. The increasing selectivity in consumer spending has led to diminished activity across various retail channels, including convenience stores, adding strain. Management revised its full-year guidance for the sweet baked goods segment downward on its second-quarter earnings call, citing ongoing challenges from shifting consumer dynamics. This raises concerns for the quarter under review. The J. M. Smucker remains vulnerable to commodity cost inflation and volatility, particularly in its Coffee and Pet Foods segments. While pricing actions have been implemented to mitigate these pressures, rising costs for raw materials, transportation and production pose risks to profitability.  The J. M. Smucker has been incurring high selling, distribution and administrative (SD&A) costs. The company expects SD&A expenses to increase roughly 9% in fiscal 2025, reflecting higher marketing investments. In the third quarter of fiscal 2025, adjusted EPS is expected to decline in mid-single digits due to elevated SD&A expenses.However, the resilience of its categories and the effective execution of key growth strategies have been aiding amid a dynamic landscape. The J. M. Smucker’s strategic priorities include focusing on growing volume and net sales, operating with excellence and prioritizing resources to capitalize on the fastest growth opportunities. The company concentrates on integrating and delivering on the acquired Hostess Brands business. SJM’s focus on reshaping its portfolio to achieve sustainable growth across pet food and pet snacks, coffee as well as snacking categories has also been working well.  Earnings Whispers for SJM StockOur proven model doesn’t conclusively predict an earnings beat for The J. M. Smucker this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. The J. M. Smucker carries a Zacks Rank #3 and has an Earnings ESP of -0.44%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.Costco Wholesale COST currently has an Earnings ESP of +0.14% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $63.2 billion, which suggests 8.2% growth from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Costco’s quarterly earnings per share is pegged at $4.09, indicating a 10.2% increase from the year-ago period. COST has a trailing four-quarter earnings surprise of 2%, on average.Home Depot HD currently has an Earnings ESP of +1.29    % and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Home Depot’s quarterly revenues is pegged at $39.14 billion, which suggests an increase of 12.5% from the prior-year quarter.The Zacks Consensus Estimate for Home Depot’s quarterly earnings per share is pegged at $3.04, indicating 7.8% growth from the year-ago period. HD has a trailing four-quarter earnings surprise of 2.3%, on average.Grocery Outlet Holding GO currently has an Earnings ESP of +1.32% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share is pegged at 17 cents, down 5.6% from the year-ago period. GO has a trailing four-quarter negative earnings surprise of 2.2%, on average.Grocery Outlet's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.09 billion, which suggests an increase of 9.7% from the prior-year quarter.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Home Depot, Inc. (HD): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report The J. M. Smucker Company (SJM): Free Stock Analysis Report Grocery Outlet Holding Corp. (GO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks