The J.M. Smucker Co. (NYSE:SJM) reported fourth-quarter results that came in ahead of Wall Street expectations, sending its shares up 4.2% in premarket trading following the announcement.
For the quarter ended April 30, the food products company posted adjusted earnings per share of $2.77, exceeding the analyst consensus estimate of $2.65 by $0.12. Revenue totaled $2.3 billion, surpassing forecasts of $2.26 billion and rising 6% from $2.14 billion in the same period a year earlier.
The increase in sales was primarily driven by a 10 percentage point contribution from net price realization, particularly within the coffee and sweet baked goods categories. This benefit was partially offset by a 4 percentage point decline related to volume and product mix.
Looking ahead, Smucker issued fiscal 2027 adjusted earnings per share guidance of $9.75 to $10.25. The midpoint of $10.00 would represent growth of approximately 9% compared with adjusted earnings per share of $9.15 reported for fiscal 2026. The company also expects net sales to decline between 3.0% and 4.0% during the year and forecasts free cash flow of approximately $1.0 billion.
“Our strong fourth quarter results demonstrate the continued strength of our focused strategy and portfolio enhancement efforts, which have transformed the Company over time,” said Mark Smucker, Chief Executive Officer. “We delivered positive net sales and earnings growth in the quarter, while navigating a dynamic external environment, and we are entering fiscal year 2027 with meaningful momentum.”
Adjusted earnings per share increased 20% from $2.31 in the prior-year quarter, reflecting continued operational improvements and pricing initiatives.
Cash generation also strengthened during the period. The company produced free cash flow of $483.9 million in the fourth quarter, compared with $298.9 million in the corresponding quarter last year.
For the full 2026 fiscal year, J.M. Smucker returned $464.7 million to shareholders through dividend payments and reduced its debt by $720.0 million, further strengthening its balance sheet.