JM Smucker (NYSE:SJM) shares are trending higher today after the branded food and beverage company delivered better-than-expected earnings for the second quarter. Indeed, EPS of $2.59 outpaced expectations by $0.12. On the other hand, its revenue declined by 12.2% year-over-year to $1.94 billion, landing in line with estimates.
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However, when excluding SJM’s pet foods divestiture and an adverse foreign currency impact, the company’s top line increased by 7% during the quarter. This increase in comparable net sales was driven by favorable volume/mix, pricing gains, and momentum in frozen sandwich sales.
The company generated $176.9 million in cash from operating activities. At the same time, higher capital expenditures resulted in its free cash flow declining to $28.2 million from $102.9 million in the year-ago period.
For Fiscal Year 2024, SJM expects comparable net sales to increase by 8.5% to 9%. In addition, EPS for the year is seen landing between $9.25 and $9.65, compared to the previous outlook in the range of $9.45 to $9.85.
What is the Stock Price Forecast for SJM?
Overall, the Street has a Hold consensus rating on JM Smucker. After a nearly 27% slide in its share price over the past year, the average SJM price target of $130.20 implies a 15.8% potential upside in the stock.
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