Investors Cheer J.M. Smucker Q1 Earnings, Outlook

J.M. Smucker Company

released its first quarter financial results reporting better than expected adjusted EPS. However, revenue fell short of estimates modestly. The company maintained its adjusted EPS forecast for the full year. The company earned $170.0 million, or $1.46 a share, for the first quarter, up from $136.4 million, or $1.14 a share, in the year-ago period. On an adjusted basis, its EPS would have been $1.86 representing a growth of 16 percent on a YOY basis. Street analysts expected the company to report EPS of $1.74. J.M. Smucker's net sales dipped 7 percent from $1.95 billion to $1.82 billion and came in below the analysts' predictions of $1.89 billion. CEO, Mar Smucker, said, "Despite the impact of deflation on the top line, we remain on track to achieve our original expectations for full-year earnings per share. We are strengthening a great portfolio of brands by investing in new capabilities and on-trend platforms that are essential to long-term sales growth." Moving ahead, the company maintained its fiscal year 2017 adjusted EPS forecast of $7.60 - $7.75. Analysts are looking for an EPS of $7.70. However, the company slashed its comparable net sales from one percent growth to 0 – one percent drop for the same period. In the pre-market trading, the stock advanced $0.77, or 0.49 percent, to $157.00.