J.M. Smucker reports earnings before the market opens on Tuesday. The packaged food-and-snack company is riding high heading into this release: Shares are up 40% over the last 12 months as profitability has soared thanks to cost cuts and a booming coffee business. At its last quarter outing, in fact, gross profit margin jumped seven percentage points to reach 30% of sales.
Investors will be watching for continued gains in Smucker's Dunkin' Donuts and Folgers coffee brands and for evidence of progress integrating the Big Heart pet-food acquisition. CEO Richard Smucker and his executive team last forecast flat sales for fiscal 2017 and profits of $7.68 per share at the midpoint of guidance. Beyond that, innovation across its coffee, pet, and consumer-foods brands will be critical to long-term growth, given that a significant portion of sales in 2015 came from products launched just within the last three years.
Guess shares, on the other hand, are limping into this week's earnings release -- down to six-year lows after a string of weak sales growth pushed profits way down. In fact, the apparel specialist reported a net loss last quarter during what CEO Victor Herrero described as a tough retail environment in the U.S. and China. "The start to the year has been a bit more challenging than we anticipated," he said in a press release.
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