J.M. Smucker raises full-year outlook after Q1 beat

The J.M.

Smucker Co. (NYSE: SJM ) stock traded higher Wednesday after the company reported better-than-expected fiscal first-quarter 2027 results and raised its full-year outlook.

Earnings Snapshot J.M.

Smucker's adjusted earnings rose 71% to $3.24 per share, beating the $2.22 consensus estimate.

The results included an 84-cent benefit from tariff refunds.

Sales rose 5% year over year to $2.22 billion, topping the $2.13 billion estimate.

Higher coffee prices contributed 4 percentage points to growth, while volume and product mix added 1 percentage point.

Stronger Uncrustables sandwich and coffee volumes offset weaker demand for sweet baked goods and peanut butter.

The quarter included an 84-cent-per-share benefit from tariff refunds.

J.M.

Smucker expects a full-year benefit of 60 cents per share and plans to reinvest the proceeds in marketing and selling, general and administrative expenses.

Adjusted gross profit climbed 28% to $950.2 million.

Adjusted operating income jumped 46% to $540.7 million.

However, mid-single-digit inflation, mainly from freight and commodity costs, continued to pressure the cost of goods sold.

The company reached its 3-times leverage target ahead of schedule.

It is now evaluating share repurchases while continuing to prioritize debt reduction.

Operating cash flow improved to $425.7 million from an outflow of $10.6 million a year earlier.

Free cash flow rose to $337.3 million from negative $94.9 million.

Business Performance U.S.

Retail Coffee sales increased 13%, driven by higher prices and growth from the Dunkin' and Café Bustelo brands.

Segment profit rose $165.8 million, primarily reflecting tariff refunds and stronger pricing.

U.S.

Retail Frozen Handheld and Spreads sales rose 3%, supported by higher Uncrustables sales.

Segment profit increased $15.4 million due to pricing, lower marketing expenses and favorable volume and mix.

U.S.

Retail Pet Foods sales grew 1% as stronger cat food demand offset increased trade spending on dog snacks.

Segment profit fell $2.4 million because of higher costs and marketing expenses.

Away From Home sales increased 3%, led by Uncrustables sandwiches and fruit spreads.

Segment profit rose $9.8 million, helped by tariff refunds and favorable volume and mix.

Sweet Baked Snacks sales fell 7% as lower snack cake and breakfast product volumes outweighed higher prices.

Segment profit declined $4.3 million.

Read Also: Top Wall Street Forecasters Revamp JM Smucker Expectations Ahead Of Q1 Earnings Outlook During the earnings call, J.M.

Smucker said it will not cut coffee list prices because commodity costs have not fallen enough or remained lower long enough to warrant a reduction.

Instead, the company is passing some of the savings to consumers through increased promotional activity.

J.M.

Smucker raised its fiscal 2027 adjusted earnings guidance to $10.50 to $11 per share from $9.75 to $10.25.