As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at shelf-stable food stocks, starting with J. M. Smucker (NYSE:SJM).
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 21 shelf-stable food stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.5% above.
While some shelf-stable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.
J. M. Smucker (NYSE:SJM)
Best known for its fruit jams and spreads, J.M Smucker (NYSE:SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food.
J. M. Smucker reported revenues of $2.19 billion, down 1.9% year on year. This print fell short of analysts’ expectations by 1.7%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ gross margin estimates but a miss of analysts’ organic revenue estimates.
"Our third quarter performance reflects the continued execution of our strategy and ability to deliver positive results in a dynamic operating and consumer environment," said Mark Smucker, Chair of the Board, President and Chief Executive Officer.
The stock is up 2.6% since reporting and currently trades at $112.
Is now the time to buy J. M. Smucker? Access our full analysis of the earnings results here, it’s free.
Best Q4: Lancaster Colony (NASDAQ:LANC)
Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ:LANC) sells bread, dressing, and dips to the retail and food service channels.
Lancaster Colony reported revenues of $509.3 million, up 4.8% year on year, outperforming analysts’ expectations by 2.8%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates.
Lancaster Colony pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.1% since reporting. It currently trades at $178.27.
Is now the time to buy Lancaster Colony? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Lamb Weston (NYSE:LW)
Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.60 billion, down 7.6% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Lamb Weston delivered the weakest full-year guidance update in the group. As expected, the stock is down 38.2% since the results and currently trades at $48.27.
Read our full analysis of Lamb Weston’s results here.
Hershey (NYSE:HSY)
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE:HSY) is an iconic company known for its chocolate products.
Hershey reported revenues of $2.89 billion, up 8.7% year on year. This result beat analysts’ expectations by 1.6%. It was a very strong quarter as it also recorded an impressive beat of analysts’ gross margin and EBITDA estimates.
The stock is up 17.8% since reporting and currently trades at $171.94.
Read our full, actionable report on Hershey here, it’s free.
Kraft Heinz (NASDAQ:KHC)
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Kraft Heinz reported revenues of $6.58 billion, down 4.1% year on year. This print came in 1.3% below analysts' expectations. It was a slower quarter as it also logged full-year EPS guidance missing analysts’ expectations.
The stock is up 1.9% since reporting and currently trades at $30.17.
Read our full, actionable report on Kraft Heinz here, it’s free.
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