SJM - J. M. Smucker tops Q4 expectations aided by pricing actions
2023-06-06 08:27:56 ET
J.M. Smucker ( NYSE: SJM ) shares edged higher as pricing power helped the company top Q4 earnings estimates.
The Ohio-based consumer staples product posted $2.64 in earnings per share, above the $2.41 analyst estimate. Meanwhile, a 10% jump in revenue to $2.23B came in $30M above consensus estimates. Higher net price realization in US retail foods increased net sales by 12%, offsetting a 2% organic volume decline. The same increase in prices for pet foods offset a 1% decline in organic volume for that segment.
“Our strong fourth quarter and full-year results demonstrate the execution of our strategy and consumer demand for our brands,” CEO Mark Smucker said. “During the quarter, we made meaningful progress in our effort to reshape our portfolio with the completion of the divestiture of certain pet food brands, while also returning significant cash to our shareholders. Looking ahead to fiscal year 2024, we are focusing on sustaining our business momentum by investing in growth platforms, such as Uncrustables sandwiches and Milk-Bone dog treats, and supporting our talented employees whose hard work and dedication have been instrumental to our success.”
For the full fiscal year ahead, the company expects adjusted earnings per share to range from $9.20 to $9.60 against a consensus of $9.38. Comparable net sales are expected to increase between 8.5% and 9.5% year over year, due in part to pricing actions.
Shares of Smucker’s ( SJM ) rose about 1% after the earnings announcement .
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J. M. Smucker tops Q4 expectations, aided by pricing actions