J.M. Smucker Q3 Profit Declines, Lowers Full-year Outlook - Quick Facts

(RTTNews) - Branded food products maker J. M. Smucker Co.'s (SJM) third-quarter net income declined to $160.9 million or $1.58 per share, from $166.7 million or $1.59 per share, in the prior-year quarter.

Excluding certain items affecting comparability, income for the quarter was $156.3 million or $1.54 per share, compared to $170.8 million or $1.63 per share in the year-ago period. On average, 16 analysts polled by Thomson Reuters expect earnings of $1.51 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter decreased 2 percent to $1.44 billion from $1.47 billion in the year-ago period, hurt by decreased volume, most significantly in the U.S. Retail Coffee segment. Analysts estimated revenues of $1.47 billion for the quarter.

J.M. Smucker said that due to its pending acquisition of Big Heart Pet Brands that is expected to close in the fourth quarter, it is not providing a formal update to its full-year earnings per share and free cash flow guidance.

However, the company is providing selective forward-looking information related to its fourth quarter and a general overview of full-year 2015 earnings. The company expects to provide its outlook for fiscal 2016, including the impact of Big Heart Pet Brands, as part of its fourth-quarter earnings release, planned for June 2015.

For the fourth quarter, the company anticipates a modest decrease in net sales compared to the same period last year before any impact of Big Heart Pet Brands. This outlook reflects a softer volume expectation in its U.S. Retail Coffee segment than previously anticipated.

Excluding any impact from the Big Heart Pet Brands acquisition, J.M. Smucker projects fourth-quarter earnings per share to result in full-year earnings per share below the midpoint of its previous guidance range of $5.45 to $5.65 by about 3 percent. Based on these fourth-quarter estimates, the company expects to realize a decrease in full fiscal year net sales of nearly 3 percent as compared to the prior year.

Earlier, the company forecast full-year net sales to decrease about 1 percent and earnings per share, excluding items, in a range of $5.45 to $5.65.

Analysts expect earnings of $5.55 per share for the year on revenues of $5.54 billion.