SJM - J. M. Smucker shares slip as profit guidance proves disappointing

J.M. Smucker (NYSE:SJM) shares were jolted downward by soft guidance that overshadowed a strong quarterly earnings print. 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 above estimates. Instead, a forecast for earnings per share in the range of $7.85 to $8.25  for the full year against a consensus of $8.92.  For the April-ended quarter, gross profit decreased $69M largely due to a 7% unfavorable impact related to Jif peanut butter recalls and unsellable inventory. Moving forward, management noted that an “unfavorable impact of approximately $125M, net of the remaining anticipated insurance recoveries” is anticipated as a result of

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J. M. Smucker shares slip as profit guidance proves disappointing