J.M. Smucker shares rise as earnings and revenue beat expectations

Investing.com -- The J.M. Smucker Co. (NYSE: SJM) reported fourth-quarter results that exceeded analyst expectations, with the stock rising 4.2% premarket following the announcement.

The company posted adjusted earnings per share of $2.77 for the quarter ended April 30, beating the analyst consensus of $2.65 by $0.12. Revenue reached $2.3 billion, surpassing the $2.26 billion estimate and representing a 6% increase from $2.14 billion in the prior-year quarter.

The revenue growth was driven by a 10 percentage point increase from net price realization, primarily in coffee and sweet baked goods, partially offset by a 4 percentage point decrease in volume/mix.

For fiscal 2027, Smucker issued guidance for adjusted earnings per share of $9.75 to $10.25. The midpoint of $10.00 represents an increase of approximately 9% compared to fiscal 2026's adjusted EPS of $9.15. The company expects net sales to decrease 3.0% to 4.0% and free cash flow of approximately $1.0 billion.

"Our strong fourth quarter results demonstrate the continued strength of our focused strategy and portfolio enhancement efforts, which have transformed the Company over time," said Mark Smucker, Chief Executive Officer. "We delivered positive net sales and earnings growth in the quarter, while navigating a dynamic external environment, and we are entering fiscal year 2027 with meaningful momentum."

Adjusted earnings per share increased 20% from $2.31 in the prior-year quarter. The company generated free cash flow of $483.9 million in the quarter, compared to $298.9 million in the prior year. For the full fiscal year 2026, the company returned $464.7 million to shareholders through dividends and repaid $720.0 million in debt.

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