J.M. Smucker Co. reported fiscal first-quarter 2027 adjusted earnings per share of $3.24, up 46.6% from the prior year and surpassing Wall Street estimates by $1.03. Revenue totaled $2.2 billion, a 3.8% increase from the $2.12 billion forecast, exceeding expectations by $80 million.
The company’s shares rose 4.18% in premarket trading to $130.70, extending gains after closing at $125.45 the previous day. The stock remains approximately 3.1% below its 52-week high of $134.85, with a 52-week low of $88.25. The dividend yield stands at 3.57%, and the company has increased payouts for 56 consecutive years.
Chief Financial Officer Tucker Marshall noted that Q1 benefited from $0.84 per share in tariff refunds, with the full-year impact expected to net about $0.60 per share after reinvestment and costs. Cost of goods sold inflation remained elevated at mid-single digits, roughly 100 basis points higher than previously anticipated. The company also reached its 3x leverage target in the quarter, with a debt-to-equity ratio of 1.29.
Management outlined plans to reduce debt by about $500 million in fiscal 2027. CFO Marshall indicated the company now has flexibility to consider share repurchases, while maintaining its commitment to the quarterly dividend. CEO Mark Smucker emphasized caution in the coffee segment due to ongoing commodity volatility, projecting a low single-digit volume decline for the full year.
Uncrustables, the company’s branded frozen sandwich, is expected to deliver high single-digit growth for the year. Café Bustelo posted a 23% increase in net sales, while Pup-Peroni saw a 5% rise. Milk-Bone returned to volume growth, though sweet baked snacks are projected to decline modestly, with the first half weaker than the second.
Analysts from Barclays, Bank of America, JPMorgan, and TD Cowen participated in the earnings call, which also covered capital allocation and operational updates from the McCalla, Alabama facility.
