The J.M. Smucker Company (SJM) shares rose in early trading after releasing mixed first quarter earnings results. The company reported earnings that topped analyst estimates, but revenue fell short. J.M. Smucker saw comparable net sales rise by 21 percent, driven by a 13 percent rise in volume during the quarter. The company also raised its full-year profit guidance. Yahoo Finance Live breaks down the company's first quarter results.
Video Transcript
BRAD SMITH: We also got to talk about JM Smucker this morning, though, too. We're pouring into these results. The company reporting mixed first quarter results. And they did see comparable net sales increase by 21% driven by a 13% increase in volume primarily thanks to get this, Jif peanut butter. The snack foods company also raised its profit guidance for the full year. Now, expecting adjusted earnings per share between $9.45 and $9.85.
Perhaps, we can just pull up a quick look at JM Smucker shares, once again, to see how those shares are reacting here for our viewers. They're higher after this report, Rachelle, by about 3.2% right now.
RACHELLE AKUFFO: And you raise some interesting points here, those comparable net sales. You mentioned Jif peanut butter. I'm not a peanut butter fan. But clearly, millions of people out there are. Also, saw contract manufacturing sales doing well. And then also tied to some of those divested pet food brands. Because we know that there was some concern about how some of their pet food brands would do.
And, of course, also their coffee brands. You have to imagine Folgers also doing well for them. When people were trading down trying to save a few bucks, maybe, from that cup of Starbucks when they're trying to tighten their purse strings, Folgers brand has really done very well here as people have been trading down. And especially, people are trying to make some choices. But then you have to wonder some of the more expensive consumer food items like their jams or their jellies, whether or not people will be willing to trade down there as well. So that'll be an interesting conversation to have.
BRAD SMITH: Yeah. And I know what people are thinking at home. What about the Uncrustables? Well, they did pretty good Smucker's Uncrustables frozen sandwiches as well as Jif peanut butter, they drove some of the volume mix net sales increase by 28 percentage points there. And then also, they saw some higher net price realization increasing net sales by 22 percentage points as well.
So for all the Uncrustables fans out there, that's just a little nugget for you to snack on, if you would like.
