JM Smucker Sales Hurt By Weakness In U.S. Retail Coffee

The J.M. Smucker Co. said Friday it had net income of $160.9 million, or $1.58 a share, in its fiscal third quarter, down from $166.7 million, or $1.59 a share, in the year-earlier period. Adjusted per-share earnings came to $1.54, above the FactSet consensus of $1.51. Sales edged down 2% to $1.440 billion from $1.465 billion, compared with the FactSet consensus of $1.467 billion. Sales were dented by weak volumes in the company's U.S. retail coffee segment. "In the near term, we expect results for the coffee segment to remain soft reflecting continued competitive dynamics, which we are addressing responsibly to ensure the long-term health of our brands," Chief Executive Richard Smucker said in a statement. The company is expecting to close the acquisition of Big Heart Pet Brands in the fourth quarter and is not providing a formal update of guidance for the period or the full-year. However, it expects coffee volumes to remain weak in the fourth quarter and to be down about 15% for the year, pushing full-year sales down nearly 3%. Fourth-quarter EPS is expected to be below the midpoint of its guidance range of $5.45 to $5.65. Shares were not yet active in premarket trade, but have gained 12.5% in the last three months, while the S&P 500 has gained 2.4%.