10:21 AM EDT, 06/06/2024 (MT Newswires) -- J.M. Smucker (SJM) on Thursday reported better-than-expected fiscal fourth-quarter earnings, while the consumer packaged goods and pet food company projected sales to grow annually in its ongoing full year.

The food producer's adjusted earnings ticked up to $2.66 per share for the April quarter from $2.64 the year before, surpassing the Capital IQ-polled consensus of $2.33. Sales, however, edged down 1% to $2.21 billion, falling short of the Street's view for $2.24 billion.

Comparable sales rose 3%, Chief Financial Officer Tucker Marshall said in prepared remarks. Price increases benefited comparable sales, while volume/mix gained 1%. The stock gained 4.9% in Thursday trading.

"Our focus on superior execution and disciplined cost management helped drive our strong results in a dynamic operating environment," Chief Executive Mark Smucker said in a statement. "Our transformed portfolio, including the acquisition of Hostess Brands during the fiscal year, has strengthened our business for long-term profitable growth across our key platforms."

By segment, revenue declined 4% to $666.1 million in J.M. Smucker's US retail coffee business due to lower prices and volume. US retail frozen handheld and spreads decreased to $450.5 million from $453.4 million, while retail pet food revenue slumped 42%. Sweet baked snacks contributed $337 million to the topline, while international and away from home sales nudged 1% lower.

The company expects sales to advance between 9.5% and 10.5% for fiscal 2025, reflecting a full year of revenue from the Hostess Brands acquisition, as well as higher prices and volume. In the just-ended fiscal year, sales slid 4% to $8.18 billion, while the Street is looking for revenue of $9.03 billion. Comparable sales are expected to increase roughly 1.5% to 2.5%.

Adjusted EPS are pegged to be in a range of $9.80 to $10.20 for the ongoing fiscal year, compared with analysts' projection of $10.13. "This guidance range includes a few cents of accretion from the Hostess acquisition, thus recovering the $0.40 of dilution in the prior year," according to Marshall's prepared remarks.

In the first quarter, sales are forecast to increase by a high-teen percentage, "partially offset by $35 million in reduced contract manufacturing sales," Marshall said. Adjusted earnings are estimated to decline by a low-single digit, mainly due to higher selling, distribution and administrative expenses and interest costs, the CFO added.

Price: 116.34, Change: +6.01, Percent Change: +5.45