J.M. Smucker falls as investors eye the soft profit guidance amid the 'dynamic' environment

[J.M. Smucker Company Announces Its Raising Coffee Prices By 9 Percent]
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J.M. Smucker (NYSE:SJM [https://seekingalpha.com/symbol/SJM]) traded lower in early action on Wednesday after posting a mixed FQ4 earnings report.

Sales were down 1% during the quarter to $2.1 billion. Excluding $52.8 million of noncomparable net sales in the prior year related to divestitures and $0.2 million of unfavorable foreign currency exchange, net sales increased 2%.

The increase in comparable net sales reflects a 6 percentage point increase from net price realization, primarily driven by higher net pricing for coffee, partially offset by lower net pricing for peanut butter. Comparable net sales also reflected a 4 percentage point decrease from volume/mix, primarily driven by decreases for coffee, dog snacks, sweet baked goods, and fruit spreads and lower contract manufacturing sales related to the divested pet food brands, partially offset by an increase for Uncrustables sandwiches.

Sales in the U.S. Retail Coffee segment were 15% higher during the quarter that ended on June 30, while sales in the U.S. Retail Pet Foods segment were down 8% and sales in the U.S. Retail Frozen Handheld and Spreads segment were off 2%.

Adjusted gross profit was down 11% year-over-year during the quarter. Adjusted EPS was reported at $1.90 vs. $1.93 consensus and $2.44 a year ago.

Looking ahead, the food company sees full-year net sales growth of +3% to +5% vs. a prior outlook for +2% to +4%. J.M. Smucker (NYSE:SJM [https://seekingalpha.com/symbol/SJM]) also sees EPS of $8.50 to $9.50 (midpoint $9.00) vs. $9.17 consensus amid what it says is a dynamic and evolving external environment, including tariffs and related trade impacts, regulatory and policy changes, ongoing input inflation, and changes in consumer behaviors that could impact its fiscal year 2026 outlook.

"Our results reflect strong top-line growth, driven by consumer demand for our portfolio of leading brands, and bottom-line results that reflect disciplined cost management and execution," stated CEO Mark Smucker. "We remain focused on investing in our key growth platforms which will enable us to deliver long-term growth and increase shareholder value," he added.

Shares of J.M. Smucker (SJM [https://seekingalpha.com/symbol/SJM]) were down 4.1% in premarket trading.

MORE ON J. M. SMUCKER

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* The J. M. Smucker Company (SJM) Q4 2025 Prerecorded Earnings Call Transcript [https://seekingalpha.com/article/4793961-the-j-m-smucker-company-sjm-q4-2025-prerecorded-earnings-call-transcript]
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* J. M. Smucker misses Q3 estimates, updates outlook [https://seekingalpha.com/news/4489523-j-m-smucker-misses-q3-estimates-updates-outlook]