Smucker Earned $2.50 per Share

This morning, JM Smucker (SJM) released fiscal Q3 earnings and they were quite good. The jelly company earned $2.50 per share, but 35 cents was due to tax reform. Wall Street had been looking for $2.12 per share, so in real terms, we’re talking about a three-cent beat.

CEO Mark Smucker said:

“We had a strong third quarter, with sales growth for key brands in every business and strong earnings per share growth fueled by the benefits of U.S. income tax reform and ongoing cost discipline,” said Mark Smucker, Chief Executive Officer. “These results reflect our commitment to delivering top and bottom line growth and supporting our portfolio of iconic and emerging brands. In addition, the benefits of income tax reform provide incremental fuel to invest in our growth initiatives and support our employees and communities as well as opportunities to increase cash returned to shareholders.”

Thanks to tax reform, Smucker increased its full-year guidance. The company now sees adjusted EPS for this year ranging between $8.20 and $8.30 per share. That’s a big increase from the previous guidance of $7.75 to $7.90 per share. Smucker also gave a one-time bonus of $1,000 to nearly 5,000 employees.

Smucker has four divisions. Their coffee group, which is the largest group, saw profit growth of 6%. Consumer foods was up 2%. Pet food was down 7%. International was up 16% thanks to forex.

Posted by on February 16th, 2018 at 10:06 am


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