J M Smucker Q4 Earnings Top Estimates; Incurs Operation Loss

J M Smucker Co SJM reported fourth-quarter FY23 sales growth of 10% year-on-year to $2.23 billion, beating the analyst consensus estimate of $2.17 billion.
Adjusted EPS of $2.64 beat the Street view of $2.37.
Gross profit increased 19% Y/Y to $792.4 million and the gross profit margin expanded by 270 basis points to 35.5%.
The company incurred an operating loss of $(633.5) million compared to an income of $302 million last year.
The company held $655.8 million in cash and equivalents as of Apr. 30, 2023. Operating cash flow for the quarter totaled $437.4 million, and the free cash flow was $298.7 million.
The company repurchased approximately 2.4 million of its common shares for $359.5 million in Q4.
Outlook: J M Smucker sees FY24 adjusted EPS of $9.20 - $9.60 versus the consensus of $9.46.
The company sees FY23 comparable net sales growth of 8.5% to 9.5%.
Net sales are expected to decrease 10.0%- 11.0% compared to the prior year, reflecting $1.5 billion of net sales related to the divested pet food brands in the prior year.
Price Action: SJM shares are trading higher by 2.15% at $152.16 in premarket on the last check Tuesday.

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