- J.M. Smucker (SJM) is expecting to suffer a $125 million hit from its peanut butter recall.
- The company revealed as much during its most recent earnings report.
- SJM stock is rising despite the warning.
Source: JHVEPhoto / Shutterstock.com
J.M. Smucker (NYSE:SJM) stock is on the move today after the company revealed the expected impact of its recent peanut butter recalls.
According to J.M. Smucker, the peanut butter recall will have the company take a $125 million hit. That’s after its expected insurance recoveries, of which it’s already recorded a receivable of $49.8 million during its most recent earnings report.
J.M. Smucker contributes the extra damage from the peanut butter recall to a variety of factors. These include “manufacturing downtime, customer returns, and unsaleable inventory, as well as other recall related costs.”
Mark Smucker, President and CEO of J.M. Smucker, said the following in the company’s current earnings report:
“Looking ahead to fiscal year 2023, we are focused on continuing the momentum of the business, investing in growth focused platforms such as Uncrustables®, partnering with retailers to restock Jif® products following the recent recall, and supporting our talented employees who are instrumental to our success.”
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SJM stock is seeing heavy trading today likely connected to the recent earnings report. This has over 898,000 shares on the move as of this writing. That’s already above the company’s daily average trading volume of 889,000 shares.
SJM stock is up 4.7% as of this writing despite the peanut butter recall news.
Investors seeking out more stock market news are going to want to stick around!
We’ve got all the hottest stock market news that traders need to know about for Tuesday! Included is Target (NYSE:TGT) stock slipping on a profit warning, what to know about the Novavax (NASDAQ:NVAX) meeting today and insider buying at Helbiz (NASDAQ:HLBZ). You can read more about these matters at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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