J.M. Smucker's EPS Outlook Offset by Weaker Sales Guidance, UBS Says

MT Newswires Live06-11

J.M. Smucker (SJM) may see a mixed investor reaction to its fiscal 2027 outlook, with UBS Securities saying stronger earnings guidance was offset by weaker-than-expected net sales guidance.

The company projected fiscal 2027 adjusted EPS of $9.75 to $10.25, above consensus expectations, while forecasting a 3% to 4% decline in net sales, below both UBS estimates and Street forecasts, the brokerage said.

UBS said in a note Tuesday that investors are likely to focus on how much conservatism is embedded in the company's net sales outlook, particularly as management expects a stronger first-quarter start with flat sales and mid-teens adjusted EPS growth.

The investment firm said the quarter itself was solid, with stronger organic sales and lower SG&A offsetting slightly weaker gross margins, while noting that questions around the company's top-line outlook could drive a mixed near-term reaction.

UBS has a buy rating and a $121 price target on the stock.

Shares of J.M. Smucker were up 3.8% in Wednesday afternoon trading.

Price: 116.68, Change: +4.29, Percent Change: +3.82

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