US Markets
J.M. Smucker Fiscal Fourth-Quarter Results Top Views; Issues Upbeat Full-Year Earnings Outlook
J.M. Smucker (SJM) reported better-than-expected fiscal fourth-quarter results on Tuesday, while the food producer's full-year earnings outlook came in above Wall Street's estimates at the midpoint.The Jif peanut butter maker's adjusted earnings rose to $2.77 a share for the quarter ended April from $2.31 the year before, surpassing the FactSet-polled consensus of $2.64. Sales improved 6% to $2.27 billion, just ahead of the Street's view for $2.26 billion. The stock rose 5.4% in the most recent premarket activity."We delivered positive net sales and earnings growth in the quarter, while navigating a dynamic external environment, and we are entering fiscal year 2027 with meaningful momentum," Chief Executive Mark Smucker said in a statement.For fiscal 2027, the company anticipates adjusted EPS between $9.75 and $10.25. The midpoint of the range is above the Street's estimate of $9.81. In fiscal 2026, adjusted EPS fell 10% to $9.15.Sales are forecast to drop by 3% to 4% from the previous fiscal year's result of $9.05 billion. The average analyst estimate is for sales of $9.09 billion.The annual decline in sales is driven by a decrease in net price realization, reflecting the company's expectations around green coffee deflation as it passes on lower costs to the consumer in the form of reduced prices, as well as lower volume and mix, Smucker said in prepared remarks. "While green coffee deflation is expected to be a headwind to net sales, it is a tailwind to profitability," the CEO added.In the fourth quarter, the Folgers and Cafe Bustelo coffee brands owner's comparable net sales grew 6%, reflecting a 10% boost from higher prices, mainly for coffee and sweet baked goods, that was partially offset by a 4% decline in volume/mix.By segment, revenue climbed 12% to $830.6 million in the US retail coffee business. Retail pet food revenue inclined 2% to $401.7 million, while US retail frozen handheld and spreads ticked up 1%. Sweet baked snacks segment sales slipped 5% to $237.2 million.For the current three-month period, J.M. Smucker expects adjusted EPS to increase by a mid-teen percentage, Chief Financial Officer Tucker Marshall said in the prepared remarks. Sales are forecast to be flat, with unfavorable volume and mix offsetting a low-single-digit increase in prices, according to Marshall. The Street is looking for non-GAAP EPS of $2.18 and sales of $2.17 billion."As the fiscal year progresses and we plan to pass through additional green coffee deflation as our cost structure improves, net pricing will become a headwind to net sales for the total company," Marshall said.
$SJM
