J.M. Smucker’s Q4 results ‘better than feared’, says DA Davidson

DA Davidson keeps a Neutral rating and $132 price target on J.M. Smucker after its Q4 earnings beat. The company’s results were better than feared, benefiting from stronger than forecast gross margin that offset a top line miss, but its initial FY25 guidance places the firm’s and consensus EPS estimates at the high end of the range, which appears attributable to higher SD&A that accounts for increased marketing spend as well as distribution expenses tied to the new Uncrustables facility, the analyst tells investors in a research note.