J.M. Smucker shares slip as revenue misses estimates despite earnings beat

Published 27/02/2025, 13:37
J.M. Smucker shares slip as revenue misses estimates despite earnings beat

NEW YORK -On Thursday, J.M. Smucker Co. (NYSE:SJM) reported mixed fiscal third-quarter results on Tuesday, with earnings topping expectations but revenue falling short of estimates.

The food and beverage company’s shares slipped -1.06% in premarket trading following the release.

For the quarter ended January 31, J.M. Smucker posted adjusted earnings per share of $2.61, exceeding the analyst consensus of $2.36. However, revenue came in at $2.19 billion, missing the $2.23 billion analysts were expecting.

The company’s net sales decreased 2% YoY to $2.19 billion. Excluding the impact of acquisitions, divestitures and foreign currency exchange, comparable net sales declined 1%.

"Our third quarter performance reflects the continued execution of our strategy and ability to deliver positive results in a dynamic operating and consumer environment," said Mark Smucker, Chair of the Board, President and Chief Executive Officer. "Net sales for the quarter would have been above our expectations, however, we experienced certain supply chain disruptions that negatively impacted results."

J.M. Smucker updated its full-year fiscal 2025 outlook, now expecting net sales to increase 7.25% compared to the prior year, down from its previous guidance of 7.50% to 8.50% growth. The company narrowed its adjusted earnings per share forecast to a range of $9.85 to $10.15, compared to its prior outlook of $9.70 to $10.10.

The slight decline in J.M. Smucker’s stock price following the earnings release suggests investors may be focusing on the revenue miss and lowered sales growth outlook, despite the better-than-expected earnings performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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