Smucker's Company Earnings Reflect Price Cuts

supermarketThe J.M. Smucker Co. (NYSE: SJM) reported fourth-quarter and full-year fiscal 2013 results before markets opened this morning. The food processor reported quarterly adjusted diluted earnings per share (EPS) of $1.29 on $1.34 billion in revenues. In the same period a year ago, Smucker reported EPS of $1.10 on revenue of $1.36 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.15 and $1.34 billion in revenue.

On a GAAP basis, Smucker posted quarterly EPS of $1.22, compared with $0.93 a year ago.

For the full year, Smucker posted EPS of $5.37 on revenues of $5.9 billion, compared with fiscal 2012 EPS of $4.73 on revenues of $5.53 billion. The consensus estimates called for EPS of $5.24 on revenues of $5.9 billion.

The company's CEO said:

The record results we reported were achieved while also making significant investments toward our future growth and creating value for shareholders. In 2013, we increased the annual dividend paid per share by nine percent, while also repurchasing nearly four percent of our shares.

The company guided fiscal year 2014 adjusted EPS in a range of $5.65 to $5.75. The company also expects net sales to remain flat in 2014 due to the impact of price declines that Smucker began implementing this year. The current consensus estimate for 2014 EPS is $5.73, and the revenue estimate calls for sales totaling $6 billion.

The company's largest division, U.S. retail coffee, saw quarterly sales fall by 1% year-over-year, but profits improved 18% and profit margin increased from 23.1% to 27.6%. Sales in U.S. consumer foods were up 5%, but profits fell 2%, attributable to price declines the company took beginning in the third quarter.

Shares are inactive in premarket trading, having closed last night at $102.37 in a 52-week range of $73.20 to $105.18. Thomson Reuters had a consensus analyst price target of around $104.00 before today's results were announced.

Filed under: 24/7 Wall St. Wire, Consumer Goods, Earnings, Food Tagged: SJM
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