Folgers parent J.M. Smucker beats profit estimates but sales fall slightly short and company lowers guidance

J.M. Smucker Co.'s stock (SJM) rose about 1% in premarket trade Tuesday, after the parent of Folgers coffee and Jif peanut butter beat profit estimates for the third quarter, while sales fell slightly short and it lowered its full-year guidance. Orrville, Ohio-based Smucker had net income of $194.9 million, or $1.91 a share, for the quarter, up from $191.1 million, or $1.79 a share, in the year-earlier period. Adjusted per-share earnings came to $2.59, while FactSet was expecting $2.47. Sales fell 12% to $1.939 billion from $2.205 billion a year ago, just below the $1.943 billion FactSet consensus. The company updated its full-year guidance to reflect the acquisition of Twinkie maker Hostess Brands. It now expects sales to rise 8.5% to 9.0%, down from prior guidance of 8.5% to 9.5%. It expects adjusted EPS to range from $9.25 to $9.65, compared with prior guidance of $9.45 to $9.85. The stock has fallen 29% in the year to date, while the S&P 500 has gained 19%.

-Ciara Linnane

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12-05-23 0712ET

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