Investors Cheer J.M. Smucker Amid Q4 Beat, Upbeat FY17 Guidance

J.M. Smucker Company SJM reported a profit for the fourth quarter compared to a loss last year. Its top line advanced 25 percent and enabled its adjusted profit to beat the Street analysts' predictions. The company also offered upbeat forecast for the fiscal year 2017.

J.M. Smucker Company reported net income of $191 million or $1.61 a share compared to a net loss of $90.3 million or a loss of $0.82 a share in the year-ago quarter. On an adjusted basis, it would have earned $1.86 a share, sharply up from $0.41 a share in the same quarter preceding year. Street analysts expected $1.20 a share.

The company's top line grew 25 percent to $1.81 billion from $1.45 billion in the previous year quarter. This was higher than the analysts' prediction of $1.75 billion.

J.M. Smucker's Executive Chairman, Richard Smucker, commented, "We concluded 2016 with a strong fourth quarter, as the Company achieved record sales, earnings, and cash flow for the full fiscal year. We are proud of the numerous accomplishments this past year. These include the successful introduction of Dunkin' Donuts® K-Cup® pods and other on-trend products, providing lower pricing on Folgers® coffee, expanding distribution for the Natural Balance® brand, completing a seamless integration of the Big Heart acquisition, and exceeding our synergy and working capital targets. These achievements reflect the Company's long-term focus, strong brand portfolio, the dedication of our employees, and our ability to execute."

The company's CEO, Mark Smucker, added, "As we start the new fiscal year, we look to continue our momentum and are confident in achieving another year of strong earnings growth. We are excited about our plans for fiscal 2017, which include building on our product innovation activities and sponsoring the U.S. Olympic and Paralympic Teams as they prepare for the 2016 Olympic Games in Rio. We have clear visibility to achieving incremental $100 million in synergies this fiscal year. Behind these and other initiatives, we are well-positioned to continue our history of delivering long-term growth and shareholder value."

Going forward, J.M. Smucker expects adjusted earnings to be $7.60-$7.75 a share for the fiscal year 2017 with adjusted sales expected to grow one percent. Street expects earnings of $6.37 a share and sales fall of 0.10 percent.

In the pre-market on Thursday, the stock traded 4.01 percent up.