The 122-year-old maker of fruit spreads, ice cream toppings and peanut butter on Tuesday reported an 85% drop in its fiscal third-quarter earnings thanks to a charge related to its U.S. retail pet foods segment and the sale of its American baking business.
Earnings for the quarter ended Jan. 31, came in at $121.4 million, or $1.07 a share, compared to $831.3 million, or $7.32 a share, in the comparable year-earlier period. Net sales rose 6% to $2.01 billion, beating the consensus estimate of $1.99 billion.
The results included a "non-cash impairment charge" from Ainsworth Pet Nutrition, which the company acquired last May, and also the divestiture of its U.S. baking business at the end of last August.
Adjusted for those two factors, the company earned $2.26 a share, above the $2.02 a share expected by analysts surveyed by FactSet.
Looking ahead into full-year 2019, the company still expects net sales of $7.9 billion and adjusted earnings in the range of $8 to $8.20 a share.
Shares of J.M. Smucker jumped nearly 7%, or $6.59, to $107.68 in early trading on the New York Stock Exchange. They ended the trading day Monday at $101.06.