J M Smucker Co (NYSE:SJM) reported stronger-than-expected fourth-quarter results on Tuesday, with its coffee business leading a broad earnings beat that sent shares up roughly 12%.
The Orrville, Ohio-based packaged food company posted net sales of $2.27 billion for the three months ended April 30, 2026, a 6% increase from the same period a year earlier and ahead of analyst estimates.
Adjusted earnings per share of $2.77 topped consensus by approximately 5% and marked a nearly 20% improvement year-over-year.
The US Retail Coffee segment was the standout performer, generating $830.6 million in sales, up 12% from the prior-year period, with Dunkin', Folgers and Cafe Bustelo all contributing to the gain. The Frozen Handheld and Spreads segment posted sales of $454.1 million, up 1% year-over-year, while segment profit surged 37%.
The company's Sweet Baked Snacks unit also surprised to the upside, with organic sales declining approximately 4% against analyst expectations of a roughly 12% decline.
Looking ahead, management guided fiscal 2027 net sales down 3% to 4%, citing green coffee deflation as a headwind to the Coffee segment. Gross margin is expected to expand approximately 300 basis points, and the company set a full-year adjusted EPS range of $9.75 to $10.25, with the midpoint of $10 above the prior consensus estimate of $9.86.
The company also said it expects to maintain its quarterly dividend of $1.10 per share and generate free cash flow of approximately $875 million in the coming fiscal year.