J.M. Smucker (SJM) disclosed a 0.5% dip in fiscal first-quarter earnings on Friday, however the parent of Jif peanut butter and Folgers coffee posted an adjusted profit and sales that easily topped forecasts from analysts.
The stronger-than-expected results from Smucker sent the food company’s shares jumping about 6% to 52-week highs.
Smucker said it earned $110.9 million, or $1.00 a share, last quarter, compared with a profit of $111.5 million, or 98 cents a share, a year earlier. Excluding one-time items, it earned $1.17 a share, easily trumping the Street’s view of $1.00.
Revenue jumped 15% to $1.37 billion, trumping consensus calls from analysts for $1.3 billion. Volumes rose 2% year-over-year.
“We are pleased with the solid start to the fiscal year with growth in volume, sales, and cash flow," CEO Richard Smucker said in a statement. "While the environment remains challenging, we continue to drive long-term growth through brand-building, product innovation, acquisitions, and productivity initiatives while maintaining a healthy balance between volume, market share, and profitability.”
Looking ahead, Smucker said it sees fiscal 2013 non-GAAP EPS at the high end of its forecast for $5.00 to $5.10. The optimistic end would meet the Street’s view of $5.10.
Management is also reaffirming its call for net sales to rise 7% in fiscal 2013.
Shares of Smucker rallied 5.33% to $83.18 Friday morning, leaving them up 6.5% so far this year. The company’s shares hit an intraday 52-week high of $83.89 earlier.