J.M. Smucker Co. Reports Robust Earnings, Yet Revised Full-Year Forecast

Orrville, Ohio - The leading parent company of popular household brands Folgers coffee and Jif peanut butter, J.M. Smucker Co., exceeded profit expectations for the third quarter. The company's stock (SJM) witnessed a rise of approximately 1% during premarket trade on Tuesday. However, sales slightly missed the mark, leading to a revision of the full-year guidance.

Solid Performance Despite Revenue Downturn

J.M. Smucker Co. reported a net income of $194.9 million, or $1.91 per share, for the quarter. This figure reflects an increase from $191.1 million, or $1.79 per share, during the same period last year. Adjusted per-share earnings came in at $2.59, outperforming FactSet's projection of $2.47.

Sales for the quarter amounted to $1.939 billion, marking a 12% decrease compared to the $2.205 billion recorded during the previous year. These results fell just short of FactSet's consensus estimate of $1.943 billion.

Revision of Full-Year Guidance

To account for the acquisition of Twinkie producer Hostess Brands, J.M. Smucker Co. adjusted its full-year guidance. The company now anticipates a sales growth rate ranging from 8.5% to 9.0%, which is slightly lower than its previous guidance of 8.5% to 9.5%. The adjusted earnings per share (EPS) forecast has been revised to a range of $9.25 to $9.65, down from the initial projection of $9.45 to $9.85.

Market Performance

Despite the strong quarterly results, J.M. Smucker Co.'s stock has experienced a decline of 29% year-to-date. This contrasts with the S&P 500's impressive gain of 19%.