JM Smucker Earnings: Shares Undervalued Despite Decent End to Fiscal 2024 and Promising 2025 Outlook

After our initial review of its (April-ended) fiscal fourth-quarter 2024 results, we don't expect to materially change no-moat JM Smucker's fair value estimate of $135 per share. Newly issued 2025 guidance isn't far from our estimates before the earnings call, and our long-term outlook is unchanged. Over the last few months, Smucker's shares have traded off from a peak of more than $130 per share to below $110 at the end of May, underperforming most other consumer packaged food companies. We think the market has perhaps overweighed costs stranded from the pet food divestiture and stepped-up marketing expense for the Hostess assets, and we view shares as undervalued. Shares were up 5% on the results, perhaps reflecting the easing of some of those concerns.