A drop in peanut butter and coffee sales alongside heated competition in the pet food business led J.M. Smucker (SJM) - Get Report to post fiscal first-quarter earnings on Tuesday that missed analysts' forecasts.
The Orrville, Ohio-based maker of Smuckers jams, Jif peanut butter, Folgers coffee and Milk Bone dog treats said it earned $154.6 million, or $1.36 a share, vs. $133 million, or $1.17 a share, in the comparable year-ago period.
On an adjusted basis, the company earned $1.58 a share, below the $1.74 a share expected by analysts polled by FactSet. Sales came in at $1.78 billion, down from $1.9 billion a year ago though matching analysts' forecasts.
"Our first-quarter performance fell short of our expectations primarily due to the timing of shipments and deflationary pricing in the coffee and peanut butter categories, as well as competitive activity in the premium dog food category," CEO Mark Smucker said in a statement.
For its full fiscal year, J.M. Smucker said it now expects adjusted earnings of between $8.35 and $8.55 a share, down from its previous guidance of adjusted earnings of between $8.45 and $8.65 a share. Analysts polled by FactSet are currently expecting per-share earnings of $8.48.
The company expects net sales to come in between -1% and zero, which includes the loss of $105.9 million of sales in the first four months of fiscal 2019 related to its divested U.S. baking business, and $25.4 million of incremental non-comparable sales for its Ainsworth unit.
The company's previous guidance was for sales between 1% and 2%.
Shares of J.M. Smucker were down more than 8%, or $9.13 a share, at $103.72 in early trading on Tuesday. The stock ended the day Monday up 1.56% at $112.93.
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