Alternatively, after being a top contributor to results last quarter, leading manufacturer of consumer food products, J.M. Smucker Co. (SJM, Financial) reversed course and became a top detractor from performance in the period. Although SJM delivered a fiscal fourth quarter and full year 2020 earnings beat from high consumer demand for the company’s staple products driven by shelter-in-place orders, management issued Fiscal 2021 guidance below consensus expectations. We believe management’s underlying sales growth for the year ahead are reasonable and expect SJM will maintain financial discipline and will continue to strengthen its bottom line. At today’s valuation, we continue to see the risk/reward skewed sharply to the upside.
From John Rogers (Trades, Portfolio)' Ariel Fund second-quarter 2020 commentary.
