Smucker Rides Coffee Buzz; Stock Up 10%

Peanut butter and jelly may be its bread and butter, but J.M Smucker (SJM Quote) actually saw the most growth from its newest brand, Folgers Coffee.

Smucker's profit in the fourth quarter nearly doubled and the company raised its full-year outlook, sending shares up almost 10% to $47.89 in afternoon trading.

The maker of jams, jellies and Jif peanut butter said its earnings reached $94.3 million, or 80 cents a share, compared with $37.1 million, or 67 cents, in the year-ago period.

Excluding restructuring, acquisition and integration costs, the company's profit was $1.02 per share, well above the 63 cents forecast by analysts.

Its sales surged 81% to $1.07 billion from $590 million as the Folgers purchase drastically boosted both sales and profit.

The acquisition was completed in November, and Smucker said Folgers grew more than double the retail coffee category rate in April.

But Smucker is also getting some help from its other popular name brands, such as Pillsbury, Hungry Jack and Eagle Brand.

Full-year profit for the company climbed to $266 million, or $3.12 per share, compared with $170.4 million, or $3.00 per share, in the previous year. Sales jumped 49% to $3.76 billion from $2.52 billion.

Smucker lifted its fiscal 2010 outlook to the range of $3.65 to $3.80 per share, up from its prior forecast of $3.62 to $3.72.