J.M. Smucker's Stock Drops After Disappointing Profit, Sales Outlook

J.M. Smucker shares slid 5.4% in premarket trade, after the fruit spread and packaged coffee company provided a disappointing fiscal second-quarter outlook, and cut its full-year profit target, citing a sharp dropoff in coffee sales. The company expects earnings per share for the quarter ended in October, excluding non-recurring items, of $1.53, below the FactSet consensus analyst estimate of $1.66. Revenue is expected to decline 5% from the same period a year ago, which implies a drop to $1.48 billion, or below analyst forecasts of $1.6 billion. The company said the disappointing outlook was driven by a 20% drop in volume for its Folgers brand coffee, on the heels of price increases. For fiscal 2015, the company cut its adjusted per-share profit outlook to a range of $5.45 to $5.65 from $5.95 to $6.05. The stock has edged up 0.4% year to date through Tuesday, while the S&P 500 has gained 10%.