J M Smucker Co (NYSE:SJM) raised its full-year profit and sales forecasts on Wednesday after first-quarter results topped Wall Street estimates, sending shares of the packaged foods maker up 3.4%.
The company posted adjusted earnings of $3.24 per share for its fiscal first quarter, far outpacing the $2.22 analysts had expected and marking a 71% jump from a year earlier. Revenue rose 5% to $2.2 billion, also ahead of the $2.13 billion consensus estimate.
Coffee was the standout segment, with net sales climbing 13% to $807.8 million. Frozen Handheld & Spreads grew 3% to $499.3 million, Pet Foods rose 1% to $371.7 million and Away From Home added 3% to reach $203.7 million. Sweet Baked Snacks was the lone decliner, down 7% to $236.5 million.
Gross profit more than doubled to $979.6 million, up 106% from a year ago, while gross margin expanded to 44.1%. Free cash flow came in at $337.3 million, well above the $115 million analysts had projected.
For the full year, Smucker now expects adjusted earnings of $10.50 to $11 per share, up from its prior outlook and above the $10.05 consensus. The company narrowed its projected net sales decline to a range of 1% to 2%, an improvement from the 3% to 4% drop it had previously forecast. Free cash flow guidance was lifted to approximately $1.1 billion from $1 billion, while capital expenditure guidance was trimmed slightly to $325 million.
Analysts at Jefferies noted management's updated guidance implies earnings of $10.15 per share when excluding an estimated $0.60 tariff benefit net of SD&A investment.