J.M. Smucker Company’s shares are trading lower on Tuesday after it reported fourth-quarter adjusted earnings per share of $2.31, beating the analyst consensus estimate of $2.24.

Quarterly sales of $2.14 billion (down 3% year over year) missed the Street view of $2.18 billion.

Excluding $45.9 million of noncomparable net sales in the prior year related to divestitures and $3.9 million of unfavorable foreign currency exchange, net sales decreased $12.1 million, or 1%.

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Adjusted operating income slumped 8% on a year-over-year basis to $422.4 million. Adjusted gross profit decreased $84.2 million, or 9%.

The decrease in comparable net sales reflects a three percentage point decrease from volume/mix, primarily driven by decreases for dog snacks, sweet baked goods, and lower contract manufacturing sales.

The company exited the quarter with cash and equivalents worth $69.9 million. Inventories totaled $1.209 billion.

Long-term debt (less current portion) increased to $7.036 billion, up from $6.773 billion a year ago. Net debt repayments in the quarter totaled $177.6 million.

Outlook: J.M. Smucker forecasts fiscal year 2026 adjusted earnings per share between $8.50 and $9.50, falling below the analyst consensus of $10.26.

The company also anticipates net sales to increase by 2% to 4% for the upcoming fiscal year.

Price Action: SJM shares are trading lower by 11.1% to $99.03 at last check Tuesday.

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