J.M. Smucker Q2: Earnings Beat, 17% Sales Surge, FY25 EPS Outlook Boost & More

The J.M. Smucker Company SJM shares are trading higher on Tuesday.

The company reported second-quarter adjusted earnings per share of $2.76, beating the street view of $2.51.

Quarterly sales of $2.271 billion (+17%) beat the analyst consensus estimate of $2.264 billion.

The increase in comparable net sales reflects a 2 percentage point increase from volume/mix, primarily driven by increases for the Uncrustables, Meow Mix, Café Bustelo, and Jif brands.

U.S. Retail Coffee net sales rose 3% in the quarter under review, U.S. Retail Frozen Handheld and Spreads increased 5%, and U.S. Retail Pet Foods decreased 4%.

Gross profit increased 22%, reflecting a favorable impact from the acquisition of Hostess Brands, favorable volume/mix, higher net price realization, and lower costs.

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Operating cash flow was $404.2 million, compared to $176.9 million in the prior year. Free cash flow was $317.2 million, compared to $28.2 million in the prior year.

“Looking ahead, we are focused on delivering our strategic priorities, including the integration of Hostess Brands, and are taking decisive actions to grow the Hostess brand,” said Mark Smucker, Chair of the Board, President and Chief Executive Officer.

Outlook: The J.M. Smucker Company has revised its fiscal year 2025 adjusted earnings per share (EPS) forecast to a range of $9.70 to $10.10 versus $9.78 estimate, slightly above the previous forecast of $9.60 to $10.00 and continues to anticipate net sales growth of 8.5% to 9.5%.

Price Action: SJM shares are trading higher by 5.37% to $119.72 premarket at last check Tuesday.

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Photo by Willis Lam via Flickr.