What Happened?
Shares of packaged foods company J.M Smucker (NYSE:SJM) fell 14.3% in the afternoon session after the company reported underwhelming first-quarter 2025 results: its full-year EPS guidance missed, and its revenue fell short of Wall Street's estimates. The weak top line reflected soft demand for dog snacks, sweet baked goods, fruit spreads and lower contract manufacturing sales related to the divested pet food brands.
On the other hand, J. M. Smucker beat analysts' gross margin expectations and its EPS and EBITDA outperformed. Full-year 2026 guidance also called for a 3% growth at the midpoint, which is a deceleration from the 7% growth in the previous year. Overall, this was a weaker quarter.
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What The Market Is Telling Us
J. M. Smucker’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. Moves this big are rare for J. M. Smucker and indicate this news significantly impacted the market’s perception of the business.
J. M. Smucker is down 15.1% since the beginning of the year, and at $94.58 per share, it is trading 22.7% below its 52-week high of $122.40 from August 2024. Investors who bought $1,000 worth of J. M. Smucker’s shares 5 years ago would now be looking at an investment worth $869.74.
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