J.M. Smucker tops earnings, guidance estimates but shares fall By Investing.com

J.M. Smucker (NYSE:) reported better-than-expected results for its fourth fiscal quarter.

Still, shares trade 1.6% lower in premarket.

The company a profit of $2.64 per share on revenue of $2.2 billion, above the consensus for earnings of $2.41 per share on revenue of $2.17B. Overall, sales rose 9.9% year-over-year while organic sales jumped 11%.

“Our strong fourth quarter and full-year results demonstrate the execution of our strategy and consumer demand for our brands,” said Mark Smucker, chair of the Board, president, and chief executive officer.

“During the quarter, we made meaningful progress in our effort to reshape our portfolio with the completion of the divestiture of certain pet food brands, while also returning significant cash to our shareholders.”

For FY24, Smuckers sees EPS at $9.40, just ahead of the consensus at $9.37. The company also sees comparable net sales rising 8.5-9.5% compared to a year-ago period.

Stifel analysts commented:

“We believe the balance of results in the quarter that were above expectations and the FY24 outlook including stronger sales growth but lower base business growth will support shares at this level. We continue with our Hold rating and $168 target price which we derive by assigning a 12.5x EV/EBITDA multiple to our CY23 estimate.”