By midafternoon, shares had taken off 4% to $91.38. Trading volume of 3.5 million was more than three times its three-month daily average.
In the three months to January, the company reported revenue 6% lower than a year ago to $1.47 billion. Analysts surveyed by Thomson Reuters had expected sales of $1.53 billion.
Third-quarter net income of 66 cents a share fell short of consensus by 2 cents.
Net sales were lower primarily due to the impact of a 6% reduction in net price realization, a result of price declines on coffee and peanut butter since the beginning of the year-ago quarter.
By segment, U.S. retail coffee dropped 8% to $578.9 million, U.S. retail consumer foods decreased 4% to $557.8 million, and international sales fell 6% to $328.8 million.
"We continue to navigate through a challenging operating environment. This journey is supported by our leading market position with strong and healthy brands," said CEO Richard Smucker in a statement.
The Orrville, Ohio-based business now sees revenue for the full year ending April declining 5% to total sales of around $5.6 billion. Analysts had expected full-year sales of $5.78 billion.
Per-share earnings guidance was downwardly revised to between $5.55 and $5.60 from $5.72 to $5.82. Analysts had forecast net income of $5.78 a share.
"While we expect our fourth quarter earnings to be down compared to a strong quarter last year, we want to reiterate that our business fundamentals remain sound and our prospects for ongoing earnings growth continue," added Smucker.