Smucker's Recalls Peanut Butter - Analyst Blog
November 21 2011 - 12:18PM
Zacks
The suspicion of the presence of salmonella contamination in
Natural Peanut Butter Chunky has urged the Ohio-based J.M.
Smucker Co. (SJM) to recall thousands of jars distributed
in many states.
Smucker had distributed 3000 jars of chunky butter of 16 ounces
each in around 25 states. However, about 16000 potentially
contaminated jars are still in Smucker’s warehouse.
As per the Food and Drug Administration reports, Smucker
believes that the Chunky peanut butter procured from November 8 to
November 17, 2011 with the best used date of August 3, 2012 and
August 4, 2012, might contain the Salmonella bacteria, which can
cause serious and sometimes incurable infections in people.
Smucker thus wants the consumers to dispose off these jars and
get the replacement coupon. They can also return it to the stores
of Price Chopper, Tops Friendly Markets, Target
Corp. (TGT) and Wal-Mart Stores Inc.
(WMT), from where the jars were purchased.
Smucker notified that only Natural Peanut Butter Chunky has been
affected with this potential Salmonella contamination. However,
there are no reports of illness as yet.
Recently, Smucker, which faces stiff competition from
ConAgra Foods Inc. (CAG) and Kraft Foods,
Inc. (KFT), reported second-quarter 2012 adjusted earnings
of $1.29 per share, lagging the Zacks Consensus Estimate of $1.39
and the prior-year quarter's earnings of $1.38 per share.
Adjusted earnings, excluding one-time costs, however came in at
17 cents and 13 cents per share in the second quarter of 2012 and
2011, respectively, benefited by the company’s buyback program. The
result in the quarter also included the operations of Rowland
Coffee Roasters Inc. after the completion of the acquisition on May
16, 2011.
Smucker thus has a Zacks #3 Rank, implying a short-term Hold
recommendation. On a long-term basis, we provide a Neutral
recommendation on the stock.
CONAGRA FOODS (CAG): Free Stock Analysis Report
KRAFT FOODS INC (KFT): Free Stock Analysis Report
SMUCKER JM (SJM): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis Report
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