ORRVILLE, Ohio - The J.M. Smucker Co. (NYSE: SJM) reported a slight earnings beat for its third quarter, which ended January 31, 2024, with adjusted earnings per share (EPS) of $2.48, surpassing analyst estimates by $0.21.
The company's revenue for the quarter reached $2.23 billion, aligning with the consensus estimate of $2.22 billion and marking a 1% increase from the same period last year.
The modest earnings beat led to an uptick in the company's stock, which rose by 2.2% following the announcement.
J.M. Smucker's third-quarter performance reflects the impact of strategic portfolio adjustments, including the divestiture of its Canada condiment business and the acquisition of Hostess Brands (NASDAQ:TWNK). Excluding these factors, as well as foreign currency exchange, the company's comparable net sales saw a 6% increase, driven by volume growth across multiple segments, including Meow Mix® cat food, contract manufacturing, and the Café Bustelo® brand.
Despite the revenue growth, the company experienced a 42% decrease in net income per diluted share compared to the previous year, primarily due to costs associated with the integration of Hostess Brands. However, adjusted operating income saw a significant 28% increase, buoyed by higher net price realization, favorable volume/mix, and lower costs.
Looking forward, J.M. Smucker updated its full-year fiscal 2024 guidance, expecting an adjusted EPS range of $9.45 to $9.65, with the midpoint slightly below the analyst consensus of $9.52. The company anticipates a comparable net sales increase of approximately 8.75% for the year, reflecting continued business momentum and higher net pricing.
"We are pleased to have delivered another quarter of strong financial results, including organic sales and earnings growth," said Mark Smucker, President and CEO. He attributed the success to strategic execution, customer and consumer loyalty, and the integration of Hostess Brands, expressing confidence in the company's growth strategy.
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