J.M. Smucker Co.'s (SJM) fiscal first-quarter earnings more than
doubled, driven by its Folgers acquisition and volume increases at
its U.S. retail businesses, exceeding Wall Street expectations.
The company said fiscal-year earnings are more likely to be at
the higher end of its June estimate for $3.65 to $3.80 a share,
which was above analysts' estimates at the time. It affirmed its
fiscal-year revenue forecast.
Smucker - which makes jams, jellies and Jif peanut butter, as
well as Crisco oils and Jif - has bought up a series of food and
consumer brands, many of which were dumped by larger
competitors.
For the quarter ended July 31, Smucker reported a profit of
$98.1 million, or 83 cents a share, up from $42.3 million, or 77
cents, a year earlier. Per-share results didn't increase as much
because of the stock issued in the Folgers deal. Excluding items,
such as restructuring and merger costs, earnings were up at 92 cent
from 82 cents.
Revenue increased 58% to $1.05 billion, which includes $399.1
million from the Folgers acquisition. Excluding the impact of
acquisitions and foreign exchange, revenue edged down 0.6%.
Analysts polled by Thomson Reuters most recently were looking
for earnings of 80 cents on revenue of $1.04 billion.
Gross margin rose to 38.6% from 31.3%, thanks to Folgers and
lower commodities costs.
Net sales in the U.S. retail market, the company's largest
market because of its recently added coffee segment - rose 6% as
volume increased 7% led by Jif, Smucker's fruit spreads and Hungry
Jack pancakes and syrups. Profit was up 12%.
Shares closed at $51.88 on Thursday and didn't trade premarket.
The stock is up nearly 20% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com