Shares in JM Smucker (SJM) jumped 7.5% to $115 on Wall Street after the US consumer staple delivered forecast-beating Q3 results. The company, which makes food for people and pets alike, also issued a confident outlook statement.
| Share price: $115 (+7.5%) | PE: n/a |
| Market cap: $11.4bn | Yield: 4.1% |
This provided investors in the challenged packaged food category with a glimmer of hope.
Best known for its fruit jams and spreads, JM Smucker’s product range spans everything from peanut butter and coffee to cat food and dog snacks. Its brands include Uncrustables sandwiches, Café Bustelo coffee and the Hostess sweet baked snacks portfolio.
Caffeine boost
Results for the third quarter to January 2026 revealed a 7% rise in sales to $2.34 billion. That topped the $2.33 billion analysts were expecting and reflected a boost from coffee price hikes.
In spite of higher commodity and tariff costs, Smucker’s adjusted EBITDA came in at $548.4 million, ahead of analysts’ estimates of $499.9 million.
At a time when US shoppers are feeling the pinch, JM Smucker’s 9% decline in adjusted EPS to $2.38 proved better than Wall Street feared.
JM Smucker did downgrade its FY26 sales growth guidance from 3.5% to 4.5% to the 3.5% to 4% range. The change in the midpoint of this guidance range reflects the estimated impact of a recent fire at the firm’s Emporia, Kansas manufacturing facility.
However, there was relief as the company maintained its adjusted EPS guidance at $8.75 to $9.25. JM Smucker also stuck with its previous free cash flow forecast of $975 million.
What did the CEO say?
CEO Mark Smucker said his charge ‘continues to deliver strong results in a dynamic external environment’.
Q3 sales and adjusted EPS ‘exceeded our expectations, reflecting the strength of our portfolio of leading brands, along with our disciplined cost management’, he added.
‘Looking ahead, we remain confident in our fiscal 2026 outlook and are focused on driving top-line growth, while enhancing profitability and earnings for the company.’
Read the press release here: https://investors.jmsmucker.com/news/default.aspx
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