J.M. Smucker Co. shares advanced 3.6% in pre-market trading on Tuesday after the company reported better-than-expected fiscal first-quarter earnings and raised its full-year outlook.
The Orrville, Ohio-based food and beverage producer posted adjusted earnings per share of $3.24 for the quarter ended July 31, a 71% increase from $1.89 in the same period a year earlier and well above the Wall Street consensus of approximately $2.21. Net sales rose 5% to $2.22 billion, exceeding the $2.12 billion forecast.
The company attributed part of its earnings beat to approximately $115 million in tariff refunds, which contributed $0.84 per share to adjusted EPS. Free cash flow turned positive to $337.3 million, compared with a negative $94.9 million in the prior-year quarter.
J.M. Smucker raised its full-year adjusted EPS guidance to a range of $10.50 to $11.00 from $9.75 to $10.25, surpassing analyst expectations near $10.05. The company also narrowed its net sales decline forecast to a drop of 1% to 2%, improving from the prior estimate of a 3% to 4% decrease.
U.S. retail coffee sales increased 13% during the quarter, while the Uncrustables brand continued its growth momentum. The stock traded at $130 in pre-market activity, exceeding the prior 52-week high of $127.64.
Analysts at UBS and JPMorgan raised their price targets following the results. UBS’s Peter Grom lifted his target to $142 from $130 on Aug. 20, maintaining a Buy rating. JPMorgan’s Thomas Palmer raised his target to $139 from $125 on Aug. 14, also keeping a Buy rating.
The broader market showed mixed performance, with the S&P 500 down 0.1%, the Nasdaq down 0.4%, and the Dow Jones up 0.1%.
