J. M. Smucker Issues FY17 Guidance; Q4 Adj. Sales Up 5% - Quick Facts

(RTTNews) - J. M. Smucker Company (SJM) announced the company expects fiscal 2017 adjusted non-GAAP income per share to range from $7.60 to $7.75. Amortization expense of $208 million, or $1.18 per share, is excluded from earnings guidance. Analysts polled by Thomson Reuters expect the company to report profit per share of $6.37. Analysts' estimates typically exclude special items.

The company expects fiscal 2017 net sales to decrease 1 percent from fiscal 2016, reflecting the U.S. canned milk divesture. Excluding the impact of the divesture, net sales are expected to increase 1 percent.

For the fourth quarter ended April 30, 2016, net income per share was $1.61, including a noncash deferred tax benefit of $0.42 per share. This is compared to a net loss per share of $0.82 in the prior year, which was impacted by financing activities and purchase accounting adjustments related to the Big Heart acquisition.

Non-GAAP income per share was $1.86 in the fourth quarter, compared to a non-GAAP loss per share of $0.41 in the prior year. The company noted that current year measures included the $0.42 per share deferred tax benefit.

Adjusted non-GAAP income per share was $2.23 compared to a loss of $0.20. Adjusted non-GAAP income per share excludes the impact of amortization, a noncash item.

On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $1.20 for the quarter.

Net sales increased 25 percent to $1.81 billion in the fourth quarter, reflecting the incremental contribution from Big Heart Pet Brands, acquired during the fourth quarter of fiscal 2015, and growth within the U.S. Retail Coffee segment. Net sales adjusted for noncomparable items increased 5 percent. Analysts expected revenue of $1.75 billion, for the quarter.