JM Smucker Co. Posts Mixed Q3 Earnings Results & Cuts Outlook On Weaker Coffee Sales
JM Smucker Co. (NYSE: SJM ) early Friday [Feb 17, 2017 | 6:46am] posted mixed fiscal third quarter earnings results and lowered the high-end of its full-year forecast, citing tepid coffee product sales.
Written by StockNews.com
The Orrville, OH-based packaged foods maker reported Q3 earnings per share (EPS) of $2.00, which was in-line with the Wall Street consensus estimate of $2.00. Revenues fell 4.8% from last year to $1.88 billion, however, missing analysts’ $1.92 billion views.
Looking ahead, SJM trimmed the high end of its 2017 outlook. It now expects full-year 2017 EPS to range from $7.60 to $7.70, still straddling Wall Street’s outlook of $7.68, but down from prior guidance of $7.60 to 7.75.
SJM expects 2017 net sales to decline 5% from fiscal 2016, hurt by a 2% impact on its U.S. canned milk business. Excluding that impact, net sales will decrease 3%. Analysts, which typically exclude one-time items from their estimates, are looking for a sales decline of 4%.
JM Smucker noted that the lower outlook was due to shaky U.S. Retail Coffee segment net sales in fiscal Q3, along with lower forecasted coffee sales in the current fiscal fourth quarter.
The company commented via press release:
“Accelerating the realization of synergies and a concentrated effort to reduce costs across the Company support our ability to deliver bottom-line growth, despite the top-line softness in our business and across the industry,” said Mark Smucker, Chief Executive Officer. “We are also aggressively pursuing a variety of growth opportunities. During the quarter, we launched our Nature’s Recipe premium pet food brand into grocery and mass merchandise outlets. In addition, we announced plans to build a new manufacturing facility to support growth for our Smucker’s Uncrustables frozen sandwiches. Behind these and other initiatives, we remain confident in achieving our long-term growth objectives and continuously enhancing shareholder value.”
...Prior to today’s report, SJM had gained 7.64% year-to-date, versus a 5.01% rise in the benchmark S&P 500 index during the same period.
SJM currently has a StockNews.com POWR Rating of B (Buy), and is ranked #23 of 62 stocks in the Food Makers category.
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