J M Smucker Tops Q1 Expectations

reported upbeat earnings for its fiscal first quarter on Thursday. The Orrville, Ohio-based company posted quarterly net income of $136.4 million, or $1.14 per share, compared to $116 million, or $1.14 per share, in the year-ago period. Excluding items, the company's non-GAAP income slipped 1 percent to $1.32 per share. Its net sales surged 47.5 percent to $1.95 billion. However, analysts were expecting earnings of $1.23 per share on revenue of $1.9 billion. The average estimate among 4 Estimize users was for earnings of $1.23 per share and revenue of $1.88 billion. The company's sales in its U.S coffee retail business surged 12 percent in the quarter, while sales in U.S. retail consumer foods business came in flat for the quarter. "We are off to a solid start this fiscal year, with net sales increasing 47 percent and non-GAAP operating income growth of 37 percent," said Richard Smucker, Chief Executive Officer. "Contributions from the Big Heart acquisition and new products were key drivers of this performance. Notably, our launch of Dunkin' Donuts® K-Cup® pods got off to a great start as we shipped over 100 million cups during the first quarter. Overall, we are on track to achieve our full year expectations for net sales and earnings, and are confident about the initiatives we have in place to support future growth." J M Smucker confirmed its full-year fiscal 2016 outlook. J M Smucker shares rose 2.15 percent to close at $109.15 yesterday.