J.M. Smucker (SJM 101.14, -5.39, -5.06%) fell over 6.3% in pre-market
after reporting weaker than expected results and issuing mixed guidance. Shares
of SJM hover near their low from November 2017 after touching a 3.5-year low in
immediate response to the report.
The legacy consumer company reported below-consensus fourth quarter earnings of $1.93/share. Revenue ticked down 0.1% year/year to $1.78 bln, which was just shy of market estimates.
Going forward, the company expects that earnings for the fiscal year will be between $8.40/share and $8.65/share, which is well short of market expectations. Revenue is expected to increase 13.0% year/-year to $8.3 bln, which is ahead of market estimates.
Looking at the segment breakdown, U.S. Retail Coffee net sales inched up 0.1% year/year to $508.20 mln. Segment profit increased 4.1% to $156 mln due to lower input costs and favorable volume/mix. The growth was partially offset by lower pricing and higher marketing expense. Segment profit margin improved 110 basis points to 30.7%.
U.S. Retail Consumer Foods net sales fell 1.9% to $465.3 mln. Volume/mix reduced sales by eight percentage points. Segment profit grew 5.0% to $114.1 mln due to higher pricing, which was partially offset by lower volume/mix. Segment profit margin grew 160 basis points to 24.5%.
U.S. Retail Pet Foods net sales declined 0.2% to $533.60 mln. Volume/mix reduced sales by one percentage point. Segment profit declined 13.5% to $102.1 mln due to higher pricing and costs. Segment profit margin declined 300 basis points to 19.1%.
International and Away from Home net sales grew 1.7% year/year to $274.2 million. Volume/mix contributed one percentage point of growth but was offset by lower net price realization. Segment profit grew 2.5% to $49.6 mln. Lower marketing expense contributed to the growth. Segment profit margin improved 10 basis points to 18.1%.
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