Shares of The J.M. Smucker Co. (NYSE: SJM) stayed purple on Monday. The inventory has dropped 3% up to now three months. The branded meals firm is scheduled to report its earnings outcomes for the second quarter of 2026 on Tuesday, November 25, earlier than market open. Right here’s a have a look at what to anticipate from the earnings report:
Income
J.M. Smucker has guided for gross sales to extend low-single-digits within the second quarter of 2026. Analysts are projecting income of $2.32 billion, which suggests a development of two% from the identical interval a yr in the past. Within the first quarter of 2026, gross sales dropped 1% year-over-year to $2.11 billion.
Earnings per share
SJM expects adjusted earnings per share in Q2 2026 to say no approx. 25% YoY. Analysts are predicting EPS of $2.10 for the quarter, which suggests a lower of practically 24% from the year-ago interval. In Q1 2026, adjusted EPS decreased 22% YoY to $1.90.
Factors to notice
SJM’s high line expectations for the second quarter embody an impression of $50 million associated to the divested Voortman enterprise and sure Candy Baked Snacks worth manufacturers. Comparable gross sales is predicted to extend mid-single-digits in Q2, reflecting a rise in web value realization partly offset by unfavorable quantity/combine. The gross sales steerage additionally displays a $15 million decline in contract manufacturing gross sales associated to the divested pet meals manufacturers.
The lower in adjusted EPS in Q2 is predicted to be pushed by a lower in adjusted gross revenue in US Retail Espresso, larger advertising and marketing investments, and the impression of divestitures. Adjusted EPS is anticipated to enhance sequentially all through the fiscal yr.
SJM is predicted to profit from energy in its US Retail Espresso and Away From Residence segments. The espresso phase is predicted to profit from larger pricing regardless that income could also be pressured by larger commodity prices. The Uncrustables model is predicted to proceed its momentum in Frozen Handheld and Spreads together with the Meow-Combine model in Pet Meals. Nevertheless, pressures on discretionary earnings would possibly impression canine snacks and candy baked items.
The corporate is engaged on product innovation, and it’s specializing in high-return merchandise whereas discontinuing merchandise that aren’t performing to its expectations. These actions are anticipated to assist reshape the portfolio and drive development. The consequences of those measures are prone to have benefited its efficiency in Q2 as effectively.
