J.M. Smucker on Wednesday raised its full-year adjusted earnings outlook after posting better-than-expected quarterly results, citing steady demand for its coffee and peanut butter brands amid persistent inflation pressures.
The company’s shares rose about 4% in premarket trading following the update. For the quarter ended July 31, net sales reached $2.22 billion, beating the $2.13 billion average estimate compiled by LSEG. Gross profit climbed to $504.9 million, including $115 million in tariff-related refunds.
On an adjusted basis, earnings per share totaled $3.24 for the quarter, exceeding the $2.22 estimate. Excluding tariff refunds, the company reported adjusted EPS of $3.24, compared with the prior-year period’s $2.89.
J.M. Smucker now forecasts annual net sales to decline 1% to 2%, an improvement from its prior guidance of a 3% to 4% decrease. The company also raised its annual adjusted earnings forecast to a range of $10.50 to $11 per share, up from its previous target of $9.75 to $10.25.
The company attributed the upward revision to tariff-related refunds and said easing coffee prices, which had surged due to higher green coffee costs and tariffs in recent years, allowed it to reduce prices. Demand for essential goods such as coffee and jams remains supported as budget-conscious consumers continue to favor at-home consumption over dining out amid still-elevated inflation.
