J.M. Smucker stock rises on Q4 earnings beat

Shares of J.M. Smucker Company (SJM) are rising after earnings exceeded analysts' expectations. D.A. Davidson analysts rated the stock Neutral, claiming the company's fourth quarter results were "better than feared" and pointing to stronger than forecast gross margins.

Jared Blikre and Julie Hyman discuss the company's performance and reactions to the earnings report.

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This article was written by Gabriel Roy

Video transcript

Now for a look at some trending tickers.

First up JM Smucker, the company reporting earnings that came in way above analysts expectations, the shares up by some 4%.

The news of these earnings has sparked a very large discussion and debate in the newsroom today about peanut butter, about jelly and the key about almond butter.

Oh, please tell me Uncrustables.

People are very passionate about this, about this food stuff and um so I got a crash course in it, although I did, I'd heard about it tangentially over the years.

Have you ever had?

You've never had a question I have but I prefer not to.

It's how I feel about a love hate is but a lot of people like them.

That's one of the reasons that the company did well last quarter.

Apparently that was one of the things fueling the sales.

Yes.

And I got a couple of notes here.

Here's one from steel rates, a stock of buy fiscal year 25 guidance likely better than feared.

So kind of a bar including a step up in investment behind Uncrustables.

There you go.

Furthermore, indication that fiscal year 26 2026 should be above Algo and should support stock out performance amid low investor expectations into the quarter.

And the Algo they're referring to is their internal growth uh algorithm that they used to.

Uh you know, everybody models growth.

If you're a company, uh the sell side does it too.

Not exactly the same way, but there you have that.

And then D A Davidson rates the stock and the stock in neutral saying fourth quarter results were, here's another one better than feared benefiting from stronger than forecast gross margin, offsetting the sales me still quote, given where sentiment and valuation stood ahead of the low.

The stock should be up this morning and just taking a quick look at the Wi Fi Interactive, uh, been kind of a rough year for staples overall.

And here you see the stock Smucker trailing the market by 9% and I do like to give the entire pandemic view and you can see trended up until the beginning of 2023 and then kind of last, uh, it kind of got knocked down during the bull market as other stocks rose.

Well, they did a bunch of stuff, right.

They, um, they bought some stuff, they got rid of stuff, they bought hostess brands, but they divested some other businesses, um, and sales overall were down, but it seems like hostess is something that performed relatively well for them.

So we'll keep watching that.