J.M. Smucker Stock Rises After Beating Profit Estimates and Raising Outlook

Key Highlights:

* J.M. Smucker (SJM) shares climbed on Tuesday following stronger-than-expected earnings and an improved outlook for fiscal 2025.

* Sales growth was driven by popular brands, including Uncrustables, Meow Mix, Cafe Bustelo, and Jif.

* The company is focusing on integrating Hostess Brands, acquired last year, into its operations.

J.M. Smucker shares surged over 5% in intraday trading Tuesday after the food company exceeded profit forecasts for the fiscal second quarter of 2025 and raised its full-year earnings outlook. The maker of iconic products such as Smucker's jellies, Folgers coffee, and Milk-Bone dog biscuits reported adjusted earnings per share (EPS) of $2.76, surpassing analysts' expectations. Revenue rose 17% year-over-year to $2.27 billion, aligning with projections.

Sales Growth Led by Key Brands

The company attributed its strong performance to increased sales of Uncrustables frozen sandwiches, Meow Mix cat food, Cafe Bustelo coffee, and Jif peanut butter. Revenue from the U.S. Retail Frozen Handheld and Spreadsdivision rose by 5%, while the U.S. Retail Coffee segment posted a 3% increase. However, declines were noted in the pet food and international food-away-from-home categories.

CEO Mark Smucker highlighted the company's strategic priorities, stating that integrating Hostess Brands, acquired for $5.6 billion last year, is a top focus. Smucker emphasized that the firm is "taking decisive actions to grow Hostess," as part of its broader strategy to drive long-term growth.

Raised Earnings Outlook for Fiscal 2025

Smucker raised its full-year EPS guidance to a range of $9.70 to $10.10, up from its prior forecast of $9.60 to $10.00, citing sustained momentum across key product categories.

Despite Tuesday's gains, J.M. Smucker's shares remain in negative territory for 2024. However, the improved outlook and focus on growth initiatives suggest the company is well-positioned to deliver value to shareholders moving forward.