10:22 AM EDT, 06/10/2025 (MT Newswires) -- J.M. Smucker (SJM) provided a full-year earnings outlook below Wall Street's expectations on Tuesday, while the food producer's fiscal fourth-quarter sales fell below market estimates.

The Jif peanut butter maker anticipates adjusted earnings in a range of $8.50 to $9.50 per share for fiscal 2026. The current consensus on FactSet is for $10.25. In year ended April, adjusted EPS increased 2% to $10.12.

Shares of the company, which owns the Folgers and Cafe Bustelo coffee brands, declined 9% in Tuesday trade.

The earnings guidance reflects the impact of coffee price increases, headwinds in the sweet baked snacks segment and tariffs, Chief Executive Mark Smucker said in prepared remarks published on the company's website.

Having increased coffee prices twice last year, J.M. Smucker took a price increase in May and plans another for August, the CEO said. "Through the combination of these two pricing actions, we will recover our anticipated costs for the fiscal year and have contemplated a historical price elasticity of demand impact to volume in our guidance," he added.

The food producer is relatively less exposed to tariffs than other industries, though the impact on green coffee represents its "largest exposure" amid record-high costs for the commodity, according to Mark Smucker. "Outside of coffee, the vast majority of our US production is sourced domestically, however, there is some sourcing of finished goods and ingredients that are subject to tariffs, as things stand today," the CEO added.

Trade discussion between US and Chinese officials reportedly continued on Tuesday in the UK. Previously, the two sides accused each other of violating their preliminary trade deal reached in May.

Sales are pegged to rise by 2% to 4% on an annual basis for the ongoing fiscal year, compared with the 7% growth in fiscal 2025. The Street is looking for $8.93 billion. The guidance includes headwinds related to certain divestitures. Comparable sales are expected to advance by 3.5% and 5.5%, reflecting the price increases that will be partially offset by lower volume and mix.

For the three-month period ended April, J.M. Smucker's sales moved down to $2.14 billion from $2.21 billion a year earlier, trailing the Street's view for $2.18 billion. Adjusted EPS dropped 13% to $2.31, but topped the average analyst estimate on FactSet for $2.24.

Comparable sales decreased 1%, weighed down by volume/mix declines in categories including dog snacks and sweet baked goods. Comparable sales, however, benefited from higher prices.

By segment, revenue rose 11% to $738.6 million in the US retail coffee business. Retail pet food revenue slid 13%, while sweet baked snacks declined 26% to $251 million.

For the ongoing quarter, J.M. Smucker forecasts adjusted EPS to decline about 25%, driven by a decrease in adjusted gross profit in the US retail coffee and sweet baked snacks segments, Chief Financial Officer Tucker Marshall said in prepared remarks. The company anticipates the metric to improve sequentially throughout the fiscal year, Marshall said.

Sales are expected to decrease by low-single-digits for the quarter, Marshall said. Comparable sales are anticipated to be flat.

Price: 103.08, Change: -7.81, Percent Change: -7.04