The J.M. Smucker Company SJM announced on Wednesday preliminary results for its second quarter.
J.M. Smucker expects to earn approximately $1.53 per share in the second quarter, which falls short of the $1.66 analysts are expecting. The company adds that it expects sales to be 5 percent lower in the quarter compared to a year ago.
Shares were down 6 percent at $98.50 in the premarket.
J.M. Smucker stated that consumers responded negatively to higher price points for its roast and ground coffee products in the quarter. Specifically, Folgers branded coffee saw a 20 percent decrease in volume sold. In addition, a lower promotional effectiveness and competitive activity contributed to the sales decline.
J.M. Smucker expects its U.S. Retail Coffee segment to report a decrease of 16 percent in its profit during the second quarter, compared to 2014.
The company also lowered its full year 2014 guidance and now expects to earn $5.45 to $5.65 per share, falling short of prior guidance of $5.95 to $6.05 and also short of the $6.01 analysts were expecting.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.