J. M. Smucker Expects Q2 EPS Of $1.55; Revises FY Targets - Quick Facts

(RTTNews) - Branded food products maker J.M. Smucker Co. (SJM) announced preliminary results for the second quarter ended October 31, 2014, and updated its 2015 fiscal year outlook.

Looking ahead to the second quarter, the company expects net sales to decrease 5 percent in fiscal 2015, compared to 2014. Income per share, excluding certain items affecting comparability, is anticipated to be $1.53 for the second quarter of 2015, consistent with 2014, and net income per share to be $1.55. On average, 16 analysts polled by Thomson Reuters expect earnings of $1.66 per share for the quarter. Analysts' estimates typically exclude special items.

The company said its second-quarter results were significantly impacted by volume declines in its U.S. Retail Coffee segment. Coffee segment volume and net sales in the second quarter of 2015 are likely to reflect a decrease of approximately 18 percent and 10 percent, respectively, compared to 2014. This was driven by a 20 percent decrease in volume for its Folgers brand, due to consumer response to higher promoted price points for its roast and ground coffee offerings in the second quarter as compared to the first quarter of this fiscal year.

For the fiscal year ending April 30, 2015, the firm now sees net sales to decrease approximately 1 percent, compared to 2014. Income per share, excluding items, is expected to be in the range of $5.45 to $5.65. The Company previously projected net sales growth of 3 to 4 percent, compared to 2014, and income per share before items affecting comparability to be in the range of $5.95 to $6.05. Analysts anticipate annual earnings of $6.01 per share.

The updated outlook reflects its revised expectations for its U.S. Retail Coffee segment in fiscal 2015, including lower volume and an unfavorable relationship between price realization and green coffee costs during the last six months of fiscal 2015, compared to the same period a year ago.