[ACCESSWIRE]
J.M. Smucker provides Impressive Results
LONDON, UK / ACCESSWIRE / June 10, 2016 / ActiveWallSt.com announces its post-earnings coverage on The J.M. Smucker Co. (NYSE: SJM). The company announced its Q4 FY16 and FY16 financial results on Thursday, June 9, 2016. The Orrville, Ohio-based company, boosted by robust sales from its recently-acquired pet food business and rising sales of its coffee brands, sharply beat market expectation. Smucker also posted a rosy forecast, propelling its shares to an all-time high on Thursday, June 9, 2016. Register with us now for your free membership and see our complete coverage on this equity at:
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For the three months ended on April 30, 2016, Smucker reported earnings of $191 million, or $1.61 per share, as compared with a loss of $90.3 million, or $0.82 per share in the year ago period. For Q4 FY16, earnings, adjusted for one time cost (including amortization), came in at $1.86 per share, as compared to loss of $0.41 in Q4 FY15, topping Analysts' consensus estimate of $1.19 per share by 56.3%. Adjusted earnings, excluding amortization, came in at $2.23 per share for Q4 FY16 as compared to a loss of $0.20 in Q4 FY15.
The company's revenue surged 25% on y-o-y basis to $1.81 billion in Q4 FY16, exceeding analysts' estimates for $1.75 billion. Big Heart Pet Brands, acquired by J.M. Smucker in March 2015, contributed $336.9 million towards revenues on Q$ FY16. Big Heart Pet Brands, maker of Milk-Bone dog treats and Meow Mix cat food, also accounted for a 48% increase in adjusted gross profit in Q4 FY16, at $681.7 million.
Smucker's U.S. retail coffee revenue grew 9.4% in Q4 FY16 to $512.6 million, boosted by the introduction of Dunkin Brands Group Inc. (NASDAQ: DNKN) licensed K-Cup pods, and dropping prices for its Folgers coffee brand. For its Consumer Food segment, the maker of Smucker's namesake jellies, jams and peanut butter reported, decline of 2% in revenue Q4 FY16 to $473.7 million, primarily attributed to divestiture of its canned milk segment. Gross margin improved to 38.1% from 29.8% a year earlier.
For Fiscal 2016, the branded food products company reported earnings of $688.7 million, or $5.76 per share as compared to earnings of $344.9 million or $3.33 per share in Fiscal 2015. The company reported revenue of $7.81 billion in FY16 as compared to revenue of $5.69 billion in FY 15.
Outlook
For Fiscal year 2017, the maker of Smucker's jam, Folgers coffee and Pillsbury expects earnings in the range of $7.60 to $7.75 per share, sharply beating the analysts' consensus estimate of $6.36 per share. However, the company expects revenue to decline 1% from the year ago period, due to the divesture of its milk canned segment.
Technical
Shares of J.M. Smucker touched an all-time high of $143.82 in premarket trading post the earnings release, closing the trading session at $143.23 up by 7.93%. Since the beginning of the year, Smucker's shares have gained 16.13% as compared to a gain of 3.50% by S&P 500.
Dividend Release
The maker of Pillsbury also recently announced a quarterly dividend, paid on Wednesday, June 01, 2016. Stockholders on record as of Friday, May 13, 2016 were issued a dividend of $0.67 per share. This amounts to a dividend yield of 2.02% and annualized dividend of $2.68 per share.
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SOURCE: Active Wall Street
