The J.M. Smucker to Report Q1 Earnings: What Surprise Awaits Investors?

The J.M. Smucker Company (SJM) is likely to witness a top and bottom-line decline when it reports first-quarter fiscal 2026 earnings on Aug. 27. The Zacks Consensus Estimate for revenues is pegged at $2.12 billion, indicating a 0.2% drop from the prior-year quarter’s reported figure.The consensus mark for earnings has moved up 4.3% in the past 30 days to $1.94 per share, which implies a 20.5% decrease from the figure reported in the year-ago quarter. SJM delivered a trailing four-quarter earnings surprise of 8.7%, on average.Key Factors to Watch Ahead of SJM’s Q1 ResultsThe J.M. Smucker’s first-quarter results are likely to be hurt by a tough consumer landscape, with inflation and weaker discretionary spending reshaping purchasing patterns. The company continues to operate in a dynamic and evolving external landscape, marked by tariffs and related trade impacts, regulatory and policy changes, persistent input cost inflation and shifting consumer behaviors.Such factors have been impacting categories like sweet baked goods, where recovery has been slower than anticipated. The company is likely to see softness in its sweet baked snacks segment owing to category and channel headwinds.Any deleverage in selling, distribution and administrative (SD&A) costs, indicating higher marketing investments, remains concerning. While these efforts are crucial for sustaining brand engagement and long-term equity, the disproportionate rise in SD&A relative to revenues introduces margin risks.However, the resilience of its categories and the effective execution of key growth strategies have been aiding amid a dynamic landscape. SJM’s strategic priorities include focusing on growing volume and net sales, operating with excellence and prioritizing resources to capitalize on the fastest growth opportunities. Solid execution of these initiatives is likely to have provided some cushion to the company’s performance in the to-be-reported quarter.Earnings Whispers for SJM StockOur proven model predicts an earnings beat for The J. M. Smucker this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.The J. M. Smucker has an Earnings ESP of +1.77% and a Zacks Rank of 3 at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.The J. M. Smucker Company Price and EPS Surprise The J. M. Smucker Company price-eps-surprise | The J. M. Smucker Company QuoteOther Stocks With the Favorable CombinationHere are some more companies worth considering, as our model shows that these have the right combination of elements to beat on earnings.Celsius Holdings, Inc. (CELH) currently has an Earnings ESP of +2.26% and a Zacks Rank of 1. The Zacks Consensus Estimate for third-quarter 2025 EPS is pegged at 27 cents, which implies an increase from break-even earnings in the year-ago quarter. The consensus mark has moved up 35% in the past 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus mark for Celsius Holdings’ quarterly revenues is pegged at $685 million, which indicates growth of 157.8% from the figure reported in the prior-year quarter. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average.Ollie's Bargain Outlet (OLLI) currently has an Earnings ESP of +1.72% and a Zacks Rank of 2. The company is likely to register increase in the top and bottom lines when it reports second-quarter fiscal 2025 numbers. The consensus mark for revenues is pegged at $662.7 million, which indicates a jump of 14.6% from the figure reported in the year-ago quarter.The Zacks Consensus Estimate for OLLI’s quarterly earnings per share of 91 cents implies a rise of 16.7% from the year-ago quarter. The consensus mark has been stable in the past 30 days. OLLI has a trailing four-quarter earnings surprise of 2%, on average.Hormel Foods (HRL) currently has an Earnings ESP of +0.08% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports third-quarter fiscal 2025 numbers. The consensus mark for revenues is pegged at $2.97 billion, which indicates a rise of 2.5% from the figure reported in the year-ago quarter.The Zacks Consensus Estimate for HRL’s quarterly earnings per share of 41 cents implies a rise of 10.8% from the year-ago quarter. The consensus mark has been stable in the past 30 days. HRL has a negative trailing four-quarter earnings surprise of 1.2%, on average.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The J. M. Smucker Company (SJM): Free Stock Analysis Report Hormel Foods Corporation (HRL): Free Stock Analysis Report Ollie's Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report Celsius Holdings Inc. (CELH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks