Published: Fri, August 26, 2016
Economy | By Melissa Porter

Kibbles 'n Bits sales suffer as pet owners get pickier

This means that the dividend declared by the company will go to the seller of the shares and not to the buyer. The company said this decrease in its outlook will be driven by lower pet food sales.

Looking ahead, SJM backed its previously-announced full-year 2017 EPS forecast of $7.60 to $7.75, which straddles analyst estimates of $7.70 per share for the year. Revenue fell short of estimates modestly.

- Net sales of USA retail coffee are down 9 percent, to $513.3 million, compared with the first quarter of previous year, because the company twice cut retail prices by 6 percent because its commodity costs dropped.

Shares of J.M. Smucker (NYSE:SJM) opened at 156.23 on Tuesday. Company net profit margin stands at 1.40% whereas its return on equity (ROE) is 2.60%. The firm has a SMA 50 (Simple Moving Average) of $34.63 and a SMA 200-(Simple Moving Average) of $35.84. Post opening the session at $87.13, the shares hit an intraday low of $87.04 and an intraday high of $87.50 and the price vacillated in this range throughout the day. The company maintained its adjusted EPS forecast for the full year. The American retailer reported $0.49 EPS for the same quarter a year ago, which suggests that earnings would decline 12.24% this time if the company meets the consensus on bottom line.

J.M. Smucker Co. (NYSE:SJM)'s stock had its "hold" rating restated by equities researchers at Morgan Stanley in a note issued to investors on Wednesday. During the last trade, stock's minimum price has been reached out at $142.55 while the maximum trading price moved at $157.31. Morgan Stanley's price target points to a potential downside of 1.13% from the stock's previous close. Analyst expected twelve month price target of $150.40. It seems that Best Buy would miss the Street on top line, but J M Smucker would beat the Street on both top and bottom lines.

J M Smucker Co (NYSE:SJM) now has a PEG ratio of 2.31 where as its P/E ratio is 24.91. J M Smucker Co (NYSE:SJM) has risen 30.74% since January 15, 2016 and is uptrending.

Investors evaluating SJM stock at the current market price of $143.63/share should know the company will next release quarterly results for the July 2016 quarter. 6 of the brokerages firms have a buy or better rating; the 0 sells versus 2 underperforms.

However, Smucker said lower sales and the corresponding profit drop are expected to be "offset" by input cost decreases in United States retail consumer foods.

Stock Price: Shares increased 0.49% in pre-market trading. The stock was sold at an average price of $144.55, for a total transaction of $2,097,709.60.

The positive results were powered by an uptick in customer traffic as the retailer logged 1% growth in comparable-store sales, reversing a slight decline in the prior quarter.

"It was the pet food division. which had been so strong", Cramer said on "Squawk on the Street".

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