J.M. Smucker Co. (NYSE:SJM) saw its shares drop by over 5% in pre-market trading after the food and beverages group saw its first quarter earnings fall, missing market forecasts, and it lowered its full year guidance.
The jam and peanut butter to coffee firm reported net income for the quarter ended July 31 of US$126.8mln, or US$1.12 per share, down from US$170.0mln, or $1.46 a share a year earlier.
The group’s adjusted earnings per share (EPS) were US$1.51, below the US$1.62 consensus estimates, as sales fell by 4% to US$1.749bn, down from US$1.816bn a year earlier, also below the $1.813bn consensus estimate.
The company also lowered its full year EPS guidance to a range of US$7.75 to US$7.95, down from US$7.85 to US$8.05 previously.
Chief executive Mark Smucker said the results were hurt by lower-than-expected demand for Folgers roast and ground coffee, but added that the group had taken actions to improve Folgers’ “competitive positioning” and volume trends were improving.
In pre-market New York trading, JM Smucker shares were down 5.6% at US$112.22.