J.M. Smucker Co. posted mixed results for its third-quarter as it dealt with softening coffee demand.
The food maker posted a profit of $160.9 million, or $1.58 per share, for the period ended Jan. 31.
Earnings, adjusted for non-recurring gains, came to $1.54 per share.
The results surpassed Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $1.50 per share.
Revenue totaled $1.44 billion, which missed Wall Street forecasts. Analysts expected higher revenue of $1.46 billion, according to Zacks.
Smucker said Friday that its performance continues to be hurt by lower volumes in its coffee division. The company attributed volume declines in Folgers coffee to competition, promotions not being as effective as in the past and consumers not responding well to promotional prices that were higher than in the past for its roast and ground coffee products.
CEO Richard Smucker said in a statement that the Orrville, Ohio-based company anticipates results for the coffee segment will remain soft in the near term due to competition.
Going forward, the company said that it expects a modest decline in fourth-quarter sales, prior to any impact from its Big Heart Pet Brands acquisition. Smucker said its guidance accounts for softer volume expectations for its U.S. retail coffee unit than previously anticipated. The company said that, based on its fourth-quarter outlook, it anticipates full-year sales will fall nearly 3 percent.
It also anticipates full-year earnings will be below the midpoint of its previous range of $5.45 to $5.65 per share by about 3 percent.
Smucker shares fell $1.39 to $111 in premarket trading.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on SJM at http://www.zacks.com/ap/SJM
Keywords: Smucker, Earnings Report