In the fiscal third quarter through January 31, The J.M. Smucker Co. reported a net income of $120.4 million, or $1.14 per share, compared to $208.5 million, or $1.96 per share, in the same period last year. Despite this decrease, adjusted earnings per share came in at $2.48, surpassing the FactSet consensus of $2.27.
Strong Sales Performance
Sales saw a 1% increase to reach $2.229 billion, up from $2.216 billion a year ago, slightly surpassing the FactSet consensus of $2.220 billion. This growth is attributed to various strategic moves made by the company including the acquisition of Hostess Brands Inc., the sale of certain pet food brands, and the divestiture of the Canada condiment business.
Focus on Growth Opportunities
CEO Mark Smucker emphasized the company’s commitment to prioritizing growth opportunities for its renowned brands, integrating Hostess Brands, and enhancing productivity and synergy-related activities. As a result, The J.M. Smucker Co. adjusted its fiscal 2024 guidance to reflect these strategic initiatives.
Fiscal 2024 Guidance Updates
The company revised its same-store sales guidance to an expected increase of 8.75%, compared to the previous range of 8.5% to 9.0%. Additionally, the adjusted EPS guidance was adjusted to a range of $9.45 to $9.65, up from the prior range of $9.25 to $9.65.
Despite these positive developments, the stock was down by 0.4% premarket following the announcement. Over the past year, The J.M. Smucker Co. has seen a decline of 15.4% in its stock price, in contrast to the S&P 500 which has gained 27%.
