Shares of The J.M. Smucker Company surged 3.6% in pre-market trading on Tuesday after the food and beverage producer reported fiscal first-quarter results that exceeded expectations.
The Orrville, Ohio-based company posted adjusted earnings per share of $3.24 for the quarter ended July 31, a 71% increase from $1.89 a year earlier and well above the Wall Street consensus of roughly $2.21. Net sales rose 5% to $2.22 billion, topping the forecast of approximately $2.12 billion.
Tariff refunds contributed approximately $115 million during the quarter, adding $0.84 per share to adjusted EPS. Free cash flow swung to $337.3 million from a negative $94.9 million in the prior-year period.
J.M. Smucker raised its full-year adjusted EPS guidance to a range of $10.50 to $11.00, up from the prior $9.75 to $10.25 range and above the analyst consensus near $10.05. The company also narrowed its forecasted net sales decline to between 1% and 2%, compared with the previous projection of a 3% to 4% drop.
U.S. retail coffee sales increased 13% year-over-year, while the Uncrustables brand continued to show strong sales momentum. The company’s defensive positioning within the consumer staples sector provided support amid mixed economic signals and uncertainty surrounding Treasury yields.
Analysts maintained positive outlooks following the results. UBS’s Peter Grom kept a Buy rating and raised his price target to $142 from $130, while JPMorgan’s Thomas Palmer maintained an Overweight rating and lifted his target to $139 from $125.
The broader market showed little movement, with the S&P 500 down 0.1%, the Nasdaq falling 0.4%, and the Dow Jones Industrial Average up 0.1%.
