J.M. Smucker stock gains after adjusted profit, sales rise above expectations, with growth in all 3 business segments

Shares of J.M. Smucker Co. (SJM) rose 0.7% in premarket trading Tuesday, after the company with food brands including Folgers, Dunkin', Smuckers and Meow Mix beat fiscal fourth-quarter earnings expectations. For the quarter to April 30, the company swung to a net loss of $600.7 million, or $5.69 a share, from net income of $202.1 million, or $1.87 a share, in the year-ago period. Excluding nonrecurring items, such as the divestiture of certain pet food brands, adjusted earnings per share increased to $2.64 from $2.23 and beat the FactSet consensus of $2.14. Sales grew 9.9% to $2.23 billion, above the FactSet consensus of $2.17 billion, boosted by an 11% rise in net price increases. U.S. Retail Coffee sales increased 7% to $692.5 million, U.S. Retail Consumer Foods grew 14% to $453.4 million and U.S. Retail Pet Foods sales rose 9% to $785.3 million. Free cash flow increased 35% from a year ago to $298.7 million. For fiscal 2024, the company expects adjusted earnings per share of $9.20 to $9.60 to surround the FactSet consensus of $9.56, but the free cash flow outlook of $650 million was well below expectations of $911.0 million. The stock has lost 6.0% year to date through Monday, while the Consumer Staples Select Sector SPDR exchange-traded fund (XLP) has eased 1.3% and the S&P 500 has climbed 11.3%.

-Tomi Kilgore

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06-06-23 0723ET

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