The J.M. Smucker Co.
) - 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
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
Conagra Foods Inc
J&J Snack Foods Corp
) , each of them carrying a Zacks Rank #1 (Strong Buy).
CONAGRA FOODS (CAG): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
SMUCKER JM (SJM): Free Stock Analysis Report
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