The Orrville, OH-based company reported Q2 adjusted net income of $2.05 per share, which was a full 12 cents better than Wall Street’s $1.93 estimate. Revenue fell 7.9% from last year to $1.91 billion, however, mission analysts’ $2 billion forecast.
Smucker noted that when excluding its non-comparable divested U.S. canned milk business, that net sales would have decreased 5% in the latest period.
Looking ahead, SJM reaffirmed its 2017 full-year outlook for EPS ranging from $7.60 to $7.75, which straddles analysts’ $7.68 estimate. Smucker also sees 2017 revenues to be flat to -1% from fiscal 2016’s $7.81 billion, which implies a floor of $7.73 billion. Analysts are looking for $7.59 billion in revenue for fiscal 2017.
The company commented via press release:
“We delivered record adjusted earnings per share for the fiscal second quarter,” said Mark Smucker, Chief Executive Officer. “We continue to make significant progress against our current year priorities and longterm goals. These include achieving sustainable cost reductions that both support the bottom-line and fuel investments in the continued growth of our brands. As an example, we are excited to announce the launch of Nature’s Recipe® premium pet food into grocery and mass merchandise outlets later this fiscal year. We are aggressively pursuing a variety of growth opportunities and remain confident about enhancing shareholder value.”
Smucker shares rose $2.05 (+1.58%) to $132.00 in premarket trading Thursday. Prior to today’s report, SJM had gained 5.36% year-to-date.