J M Smucker Q2 Earnings Beat Views

J M Smucker Co SJM reported better-than-expected earnings for its fiscal second quarter on Thursday. The Orrville, Ohio-based company posted quarterly net income of $176 million, or $1.47 per share, versus $158.3 million, or $1.55 per share, in the year-ago quarter. Its non-GAAP earnings came in at $1.62 per share for the latest quarter. Its sales climbed 40 percent to $2.08 billion. However, analysts were expecting earnings of $1.51 per share on revenue of $2.08 billion. The average estimate among 10 Estimize users was for earnings of $1.53 per share and revenue of $2.07 billion. U.S. Retail Coffee segment net sales climbed 10 percent for the quarter, while U.S. Retail Consumer Foods sales dropped 3 percent. Gross profit climbed 47 percent in the quarter, while operating income surged 23 percent. "We are pleased to have delivered another quarter of solid financial results, which reflects the momentum we are seeing across our businesses," said Richard Smucker, Chief Executive Officer. "Much of our net sales growth is coming from the addition of the pet food business which continues to perform well. In addition, our coffee business had a strong second quarter, with double-digit volume gains for Folgers® roast and ground coffee and contributions from our recently introduced Dunkin' Donuts® K-Cup® pods." For the full year, the company now projects non-GAAP earnings of $5.70 to $5.80 per share, on sales of $7.9 billion. Analysts expected earnings of $5.75 per share on revenue of $8.13 billion. J M Smucker shares gained 1.13 percent to close at $113.38 yesterday.