SJM - J. M. Smucker shares jump to the upside despite soft guidance (update)

J.M. Smucker (NYSE:SJM +4.8%) shares surged upward, reversing course from S&P laggard to leader in a matter of hours on Tuesday.  For the fiscal fourth quarter, non-GAAP EPS of $2.23 beat analyst estimates by $0.34 while revenue of $2.03B narrowly beat estimates by $50M. Further, the company offered a bullish outlook for net sales to increase 3.5% to 4.5%, well above the consensus growth of 0.9%. However, the Orville, Ohio-based maker of food products was cautious on guiding for continued profits, forecasting $7.85 to $8.25 in EPS for the full year against a consensus of $8.92. Management explained that this forecast was hit mainly by a recall of Jif peanut butter products. Management noted that an “unfavorable impact of approximately $125M, net of the remaining anticipated insurance recoveries” is anticipated as a result of the recall. Shortly after the print, shares fell nearly 4% and found themselves among the largest

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J. M. Smucker shares jump to the upside despite soft guidance (update)