The J.M. Smucker Company
), a leading manufacturer of food products, to beat expectations
when it reports fourth quarter fiscal 2013 results on Jun 6.
Why a Likely Positive Surprise?
Our proven model shows that Smucker is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP
: Smucker'sExpected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
) stands at +1.74%. This represents the difference between the
Most Accurate estimate and the Zacks Consensus Estimate. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Zacks Rank #2 (Buy)
: Smucker currently carries a Zacks Rank #2 (Buy). Note that
stocks with Zacks Ranks #1, #2 and #3 have a significantly higher
chance of beating earnings. The sell rated stocks (#4 and #5)
should never be considered going into an earnings
The combination of the stock's Zacks Rank #2 and ESP of +1.74%
makes us confident of an earnings beat on Jun 6.
What is Driving the Better Than Expected Earnings?
Continued focus on its brands through innovations and
promotional offerings, strategic acquisitions and improving
volumes offered by K-cups are expected to lead to a positive
earnings surprise in the upcoming quarter.
Smucker has beaten estimates in three out of the last four
quarters, posting an average earnings surprise of 11.80%. Smucker
also raised the lower end of its adjusted earnings guidance for
fiscal 22013 to a range of $5.17 to $5.22 per share from 5.12 to
$5.22 per share announced previously. The company had already
increased its fiscal 2013 earnings guidance in the first and
second quarters, reflecting its attractive earnings potential.
Estimates are also showing upward trend, ahead of the fourth
Other Stocks to Consider
Smucker is not the only firm looking up. You can also consider
these stocks that offer exposure to the attractive consumer
Flower Foods Inc
), Earnings ESP of +2.86% and Zacks Rank #1 (Strong Buy)
Sanderson Farms Inc
), Earnings ESP of +10.11% and Zacks Rank #1 (Strong Buy)
Kraft Foods Group Inc
), Earnings ESP of +4.48% and Zacks Rank #3 (Hold)
FLOWERS FOODS (FLO): Free Stock Analysis
KRAFT FOODS GRP (KRFT): Free Stock Analysis
SANDERSON FARMS (SAFM): Free Stock Analysis
SMUCKER JM (SJM): Free Stock Analysis Report
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