J. M. Smucker Maintains FY17 Forecast After Higher Profit, Weak Sales In Q2

(RTTNews) - J. M. Smucker Co. (SJM), a branded food and beverage products company, on Thursday maintained its fiscal 2017 forecast after reporting higher profit and lower net sales in its second quarter.

For the year, the company continues to expects adjusted earnings per share to range from $7.60 to $7.75.

On average, 15 analysts polled by Thomson Reuters expect earnings of $7.68 per share for the year. Analysts' estimates typically exclude special items.

Comparable net sales for the full year are still expected to be flat to down 1 percent.

Reflecting the U.S. canned milk divestiture, net sales are still expected to decrease in the range of 2 percent to 3 percent from fiscal 2016. Excluding the impact of the divestiture, net sales are expected to range from flat to down 1 percent.

Mark Smucker, Chief Executive Officer, said, "We are aggressively pursuing a variety of growth opportunities and remain confident about enhancing shareholder value."

In the second quarter, net income increased 1 percent to $177.3 million from $176 million last year. Net income per share increased 3 percent to $1.52 from $1.47 last year.

Adjusted earnings per share were $2.05, compared to $1.91 last year.

Net sales decreased 8 percent to $1.91 billion from $2.08 billion a year ago. Excluding the noncomparable divested U.S. canned milk business, net sales decreased 5 percent.

Analysts expected earnings of $1.93 per share on sales of $2 billion for the quarter.