J.M. Smucker slashes guidance for fiscal 2025; Q1 results mixed

J. M. Smucker (SJM) cut its guidance for the full fiscal 2025, missing analyst expectations.

For the fiscal Q1 2025, the food and beverage company posted earnings per share (EPS) of $2.44, surpassing consensus estimates of $2.17. Revenue came in at $2.13 billion, in line with projections.

SJM shares fell 0.6% in premarket trading Wednesday.

In the U.S. Retail Coffee segment, net sales were $623.4 million, a slight decrease of 0.3% year-over-year, but slightly above the $622.7 million estimate.

The U.S. Retail Pet Foods segment saw net sales of $399.7 million, down 9.4% year-over-year, falling short of the $429.9 million estimate.

U.S. Retail Consumer Foods net sales reached $496.8 million, a 7.1% increase year-over-year, surpassing the $462.2 million estimate.

The International and Away From Home segment reported net sales of $271.5 million, a 1.3% decline year-over-year, missing the $278.9 million estimate.

Adjusted operating income for the quarter was $447.9 million, up 35% year-over-year and exceeding the estimate of $405.3 million. Meanwhile, free cash flow came in at $49.2 million, a 27% drop year-over-year, and notably below the $159.1 million estimate.

"We are pleased with the strong start of our fiscal year and ability to deliver net sales and earnings growth in what remains a dynamic consumer environment," said Mark Smucker, Chair of the Board, President and CEO.

"These results are driven by the focus we have established and progress we have made in delivering our core business, successfully integrating Hostess Brands, and achieving our goals for transformation, cost discipline, and cash generation."

For fiscal year 2025, J. M. Smucker has reduced its EPS guidance to a range of $9.60 to $10.00, down from the previous forecast of $9.80 to $10.20. Analysts had estimated EPS of $10.03

Source: Investing.com