Foods producer The J.M. Smucker Company (SJM) is set to report its first quarter fiscal 2013 results before the opening bell on August 17, 2012. The Zacks Consensus Estimate for the first quarter is pegged at $1.00 on revenues of $1.3 billion.
Fourth Quarter Recap
Smucker’s fourth quarter fiscal 2012 adjusted earnings (excluding restructuring, merger and integration charges) were $1.10 per share, exceeding the Zacks Consensus Estimate by 11 cents. Robust sales growth boosted the earnings. The results also surpassed the prior-year quarter's adjusted earnings of $1.00 per share.
Net sales in the quarter increased 14% year over year to $1.36 billion. The net sales inched past the Zacks Consensus Revenue Estimate of $1.35 billion. The increase was primarily driven by pricing actions and the benefits from acquisitions.
Read our full report at Smucker Beats, Provides 2013 Outlook
Agreement of Estimate Revisions
Over the past 7 days, two of the 14 estimates for the first quarter of fiscal 2013 moved up. Moreover, in the last 30 days three of the 14 estimates moved in the upward direction. None of the estimates moved down in the last 7 and 30 days.
The upward revision of estimates followed the 8% hike in dividend to 52 cents per share that was supported by strong cash flows. The company also announced plans to branch out into specialty nut butters and launch chocolate and mocha cappuccino varieties of Jif hazelnut spreads in early fiscal 2013, which are expected to boost sales in the coming quarters.
Magnitude of Estimate Revisions
Given the upward estimate revisions, the Zacks Consensus Estimate for the first quarter of fiscal 2013 has moved up by one cent over the last 7 days to $1.00.
Surprise History
Over the past four quarters, Smucker has surpassed estimates twice and missed two times, thereby resulting in an average earnings estimate of a negative 1.47%. The company recorded a maximum positive surprise of 11.11% in the fourth quarter of fiscal 2012.
Zacks Rank
Orrville, Ohio-based J.M. Smucker Company engages in the manufacturing and marketing of branded food products in the United States, Europe and Canada. The stock carries a Zacks #3 Rank (a short-term Hold rating).
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