Smucker Hits 52-Week High - Analyst Blog
11 Marzo 2013 - 12:50PM
Zacks
Shares of The J.M. Smucker Co. (SJM) – a food
& beverage company - hit a new 52-week high of $97.75 on Mar 8,
after reporting solid fiscal third quarter results on Feb 15. This
Zacks Rank #3 (Hold) company beat its previous 52-week high of
$95.35 attained on Feb 27, and has generated a return of
approximately 9.1% since Dec 31, 2012. The company’s long-term
estimated EPS growth rate is 8.93%. Average volume of shares traded
over the last three months came in at approximately 811K.
Solid Third Quarter Performance
Smucker posted strong fiscal third quarter results beating the
Zacks Consensus Estimate for both revenue and earnings. Moreover,
Smucker has surpassed the Zacks Consensus Estimate in the last
three out of four quarters, while matching the same in one quarter,
resulting in an average surprise of 11.8%.
The company’s continued focus on its brands through innovations
and promotional offerings, strategic acquisitions, improving
volumes of K-cups, and effective utilization of cash through
buybacks drove the quarter.
The company’s earnings of $1.47 per share jumped approximately
20% year over year in the third quarter, primarily driven by
increased sales growth and lower share count due to share buybacks.
Net sales growth of 6% was driven by favorable sales mix and
benefits from the acquisition of Sara Lee Corporation’s North
American foodservice coffee and hot beverage business in January
last year. Volume gains in the higher priced K-Cups coffee brand
and peanut butter business also fueled growth.
In addition, the company managed to offset higher peanut costs
in the quarter by acquisition gains, favorable sales mix and lower
green coffee costs. This was also reflected in higher gross and
operating margins.
Smucker has also raised the lower end of its adjusted earnings
guidance to a range of $5.17 to $5.22 per share from 5.12 to $5.22
per share announced previously.
Other Stocks to Consider
Stocks in the food industry that are portraying strong upward
trend in the bourses are Flower Foods Inc (FLO),
Conagra Foods Inc (CAG) and J&J Snack
Foods Corp (JJSF) , each of them carrying a Zacks Rank #1
(Strong Buy).
CONAGRA FOODS (CAG): Free Stock Analysis Report
FLOWERS FOODS (FLO): Free Stock Analysis Report
J&J SNACK FOODS (JJSF): Free Stock Analysis Report
SMUCKER JM (SJM): Free Stock Analysis Report
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