Smucker 3Q Profit up 32 Percent
ORRVILLE, Ohio (AP) — J. M. Smucker Co. said Friday that its fiscal third-quarter net income jumped 32 percent, helped by strong demand for its profitable K-Cups coffees and peanut butter products.
For the quarter ended Jan. 31, the Orrville, Ohio-based company earned $154.2 million, or $1.42 per share, up from $116.8 million, or $1.03 per share, in the same quarter last year.
Revenue increased 6 percent to $1.56 billion from $1.47 billion.
The results beat Wall Street predictions. Analysts, on average, expected earnings of $1.38 per share on $1.56 billion in revenue, according to FactSet.
Smucker said its sales got a boost from continued increase in popularity of its K-Cups products, along with higher sales of peanut butter products, which are priced higher per pound compared with the company's other products.
The acquisition of Sara Lee Corp.'s North American foodservice coffee and hot beverage business, which closed on Jan. 3, boosted the recent quarter's sales by $59.7 million, Smucker said.
The company raised the lower end of it fiscal 2013 profit guidance, saying it now expects an adjusted profit of $5.17 to $5.22 per share. It previously predicted $5.12 to $5.22 per share. Sales are expected to rise over 6 percent from 2012 levels.
Based on the company's fiscal 2012 revenue, the guidance implies 2013 sales of more than $586.2 million.
Analysts expect earnings of $5.22 per share on $5.93 billion in revenue.
Smucker shares rose 1 cent to $92.17 in premarket trading.