Publish date:

J.M. Smucker Guidance Tops Street

J.M. Smucker's expecting the company's full-year earnings next year to be better than analysts are expecting, after exceeding Wall Street expectations in the fourth quarter.
Author:


NEW YORK (TheStreet) -- J.M. Smucker (SJM) - Get Report is expecting full-year earnings next year to better than analysts are expecting, after exceeding Wall Street expectations in the fourth quarter.

J.M. Smucker said that the next fiscal year should see net sales increase about 3% compared with the previous year, excluding acquisitions. Income per share is expected to range between $4.50 and $4.60, excluding restructuring, and merger and integration costs of 55 cents to 60 cents a share.

Analysts are expecting Smucker's next fiscal year earnings to be at $4.43 a share. Smucker notes that while the company's four reportable segments will remain the same for the next fiscal year, the calculation of segment profit will change to include intangible asset amortization and impairment charges related to segment assets, along with certain other charges in each of the segments. These items were previously included as corporate expenses and were not allocated to the segments.

>>Search for Highest Dividends by Rate or Yield

For the fourth quarter, the company posted a profit of $120.6 million, or $1.01 a share, up from $94.3 million, or 80 cents a share, a year earlier. Excluding items, such as restructuring, and merger and integration costs, the company's non-GAAP income per share was $1.07, up from $1.02 a share previously. Analysts, on average, expected earnings of 80 cents a share.

"We achieved another year of record sales while growing volume and profitability across our portfolio of iconic brands," said Tim Smucker, the company's co-CEO, in a written statement. "With the completion of our first full fiscal year including the coffee business, we have just begun to realize the potential of our new, larger company."

Net sales for the fourth quarter was about $1.0691 billion, compared with $1.0685 the previous year. The company said that strong sales in the U.S. retail consumer market segment mostly offset declines in the U.S. retail oils and baking market and the U.S. retail coffee market segments.

TheStreet Recommends

-- Reported by Andrea Tse in New York

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.

Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.