Smucker Surges After Pet Food, Coffee Pods Fuel Earnings Growthby
J.M. Smucker Co. shares rose as much as 7.6 percent after quarterly sales and earnings topped analysts’ estimates, helped by pet food and Dunkin’ Donuts-branded coffee pods.
Fourth-quarter earnings were about $1.44 a share, excluding a deferred tax benefit, according to a statement Thursday. Analysts had predicted $1.21 for the period, which ended April 30.
Smucker, best known for its namesake jam, is getting a boost from its push into pet food. The company bought Big Heart Pet Brands last year in a deal valued at about $5.8 billion, gaining a roster of top-selling brands that includes Milk-Bone and Meow Mix. Smucker also has seen success with its retail coffee business, lifted by demand for the Dunkin’ Donuts pods, which work in Keurig machines.
Smucker’s stock climbed as high as $142.82, reaching record territory. It also marked the biggest gain of a Standard & Poor’s 500 Index company on Thursday. The shares had already been up 7.6 percent this year before the rally.
Sales grew 25 percent to $1.81 billion last quarter, topping the $1.75 billion estimate.