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Smucker Posts Downbeat Q4 Earnings, Issues Weak Earnings Forecast

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Earnings Scheduled For November 17, 2016

J M Smucker Co (NYSE: SJM) reported weaker-than-expected earnings for the fiscal fourth quarter and issued a weak earnings forecast for the full year.

The Orrville, Ohio-based company posted a quarterly net loss of $90.3 million, or $0.82 per share, versus a year-ago profit of $118.5 million, or $1.16 per share. Excluding non-recurring items, the company's adjusted earnings came in at $0.98 per share.

Its sales climbed 17 percent to $1.45 billion, while adjusted revenue shrank to $1.21 billion from $1.23 billion. However, analysts were expecting earnings of $0.99 per share on revenue of $1.36 billion.

The average estimate among 9 Estimize users was for earnings of $1.00 per share and revenue of $1.33 billion.

Sales at the U.S. Retail Coffee segment slipped 1 percent year-over-year in the fourth quarter, while sales at the U.S. Retail Consumer Foods segment fell 8 percent.

The U.S. Retail Pet Foods segment posted net sales of $239.1 million, while net sales in the International, Foodservice, and Natural Foods segment gained 6 percent in the fourth quarter.

Its gross profit shrank $9.7 million in the fourth quarter versus the year-ago quarter, while operating income slipped $120.9 million year-over-year.

Selling, distribution, and administrative expenses climbed 32 percent year-over-year in the quarter.

Richard Smucker, Chief Executive Officer said, "While these results were significantly impacted by the challenges in our U.S. Retail Coffee segment, we are optimistic about our current initiatives and confident in the long-term prospects of our coffee business."

"We enter the new fiscal year as a larger, stronger, and more diversified company, and are excited about the opportunities that lie ahead," added Vince Byrd, Vice Chairman.

For fiscal 2016, Smucker projects adjusted earnings of $5.65 to $5.80 per share, on net sales of around $8 billion. Analysts had expected earnings of $5.85 per share on revenue of $7.95 billion.

Smucker shares fell 0.33 percent to close at $118.16 yesterday.

Posted-In: profitEarnings News Guidance

 

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