Earnings Preview: Jelly maker J.M. Smucker to report fiscal 3rd-quarter results on Wednesday

J.M Smucker to report 3Q results Wednesday

ORRVILLE, Ohio — J.M. Smucker, the maker of Jif peanut butter, Pillsbury frosting, Folgers coffee and its namesake jams and jellies, reports its fiscal third-quarter results before the stock market opens Tuesday.

WHAT TO WATCH FOR: Any slowing in its coffee business as Folgers and Dunkin’ Donuts coffee have boosted results for some time.

The company has a very recession-friendly lineup of products and has benefited from consumers eating at home more often. However, coffee has been a major driver in its recent success. For example, in the most recent quarter revenue would have been down 6 percent if not for the impact of Folgers. J.M. Smucker bought Folgers from Procter & Gamble more than a year ago and since then, the line has exceeded the company’s expectations.

WHY IT MATTERS: J.M. Smucker products are among the most common food staples sold, making the company a good barometer of how shoppers are spending in stores and how other factors like how commodity pricing will affect the food industry.

WHAT’S EXPECTED: Analysts polled by Thomson Reuters expected the company to earn $1.05 per share for the quarter on revenue of $1.16 billion.

LAST YEAR’S QUARTER: The company earned $77.9 million, or 68 cents per share, on revenue of $1.18 billion. Excluding integration and acquisition charges related to its purchase of Folgers coffee, the company earned 88 cents per share.