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J.M. Smucker Raises Full-Year Outlook Following First-Quarter Beat

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J.M. Smucker Raises Full-Year Outlook Following First-Quarter Beat

J.M. Smucker (SJM) lifted its full-year outlook on Wednesday as the food producer reported stronger-than-expected fiscal first-quarter results, with earnings getting a boost from tariff refunds.

The Jif peanut butter maker now anticipates adjusted earnings of $10.50 to $11 per share for fiscal 2027, up from its previous guidance of $9.75 to $10.25. The current FactSet consensus is non-GAAP EPS of $10.07.

"Our updated guidance reflects stronger-than-anticipated momentum across the business and a favorable net benefit of approximately $0.60 related to the receipt of tariff refunds," Chief Financial Officer Tucker Marshall said in prepared remarks.

The company received about $115 million in tariff refunds in the first quarter, reflecting a $0.84-per-share benefit.

Earlier this year, the US Supreme Court ruled that the Trump administration lacked authority under the International Emergency Economic Powers Act to impose certain tariffs, paving the way for refunds to companies that had paid the duties.

Sales are now expected to decline by 1% to 2% for the ongoing fiscal year, compared with prior projections for a 3% to 4% decrease. The Street is looking for sales of $8.78 billion, reflecting a 3% drop. The revised sales outlook reflects improvements in volume and mix, as well as net price realization, Marshall said.

The stock gained 3.2% in Wednesday trade.

For the quarter ended July, the Folgers and Cafe Bustelo coffee brands owner's adjusted EPS jumped 71% year over year to $3.24, including the $0.84 benefit from tariff-related refunds. The average analyst estimate called for $2.22.

Sales rose 5% to $2.22 billion, ahead of the market's forecast for $2.13 billion. Price and volume gains in coffee, as well as unit growth in the company's Uncrustables sandwich brand, helped drive topline higher. Comparable net sales grew 5%.

RBC Capital Markets expected J.M. Smucker to deliver quarterly results above Wall Street's estimates, reflecting strength in the coffee segment and the Uncrustables sandwich brand, according to a note sent Tuesday.

By segment, revenue rose 13% in US retail coffee and 3% in frozen handheld and spreads. Pet food sales ticked up 1% in the US, while sweet baked snacks recorded a 7% decline in revenue.

For the ongoing three-month period, the company expects adjusted EPS to increase in the low-20% range, with sales seen falling 3% to 4%, Marshall said in the prepared remarks. The Street is looking for non-GAAP EPS of $2.56 and sales to decrease by 4.1%.

Earlier in August, packaged food company Kraft Heinz (KHC) narrowed its full-year EPS outlook after reporting better-than-expected fiscal second-quarter results. Beverage company Keurig Dr Pepper (KDP) reiterated its 2026 guidance as its second-quarter results topped market expectations.

Price: $131.94, Change: $+6.49, Percent Change: +5.17%

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