J.M. Smucker Co. shares rose the most in more than six years after earnings beat analysts’ estimates, helped by demand for coffee products, including its new Dunkin’ Donuts-branded pods.
Second-quarter profit rose to $1.62 a share, the Orrville, Ohio-based company said on Thursday. Analysts had estimated $1.52 a share in the period, which ended Oct. 31. Smucker also boosted the low end of its annual profit forecast. It now expects $5.70 to $5.80 a share this year, up from at least $5.65 previously.
The results were bolstered by Smucker’s U.S. retail coffee business, which outperformed its consumer-food and international divisions. Folgers roast and ground coffee -- as well as the new Dunkin’ Donuts pods, which work in Keurig machines -- were highlights, Chief Executive Officer Richard Smucker said.
Smucker’s stock climbed 7 percent to close at $121.28 in New York, the biggest one-day increase since June 2009. The shares have gained 20 percent this year.
The company cut prices on its coffee products by an average 6 percent in July, helping narrow the gap with Kraft Heinz Co.’s Maxwell House. Total U.S. coffee sales rose 4.5 percent in October, according to data compiled by Bloomberg.
The company also acquired the Big Heart Pet Brands business earlier this year, fueling sales growth.