JM Smucker Slips To Loss In Q4; Stock Down 8% On Weak FY26 Profit Outlook

J. M. Smucker

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(RTTNews) - Consumer goods company J. M. Smucker Co. (SJM) reported on Tuesday a net loss for the fourth quarter compared to a profit last year, hurt primarily by huge goodwill impairment charges and lower net sales. Adjusted earnings per share topped analysts' estimates, while quarterly net sales missed it. The company also provided weak profit guidance for the full-year 2026.

In pre-market activity on the NYSE, J. M. Smucker shares are tumbling $8.92 or 7.98 percent to trade at $102.90.

"Our fourth quarter and full-year results underscore the demand for our leading brands, the resilience of our business, and our ability to act with speed and agility in a dynamic operating environment," said Mark Smucker, Chief Executive Officer and Chair of the Board.

The results reflect the divestiture of certain Sweet Baked Snacks value brands on March 3, 2025, divestiture of the Voortman business on December 2, 2024, divestiture of the Canada condiment business on January 2, 2024, acquisition of Hostess Brands on November 7, 2023, and divestiture of the Sahale Snacks business on November 1, 2023.

For the fourth quarter, the company reported a net loss of $729.0 million or $6.85 per share, compared to net income of $245.1 million or $2.30 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter was $2.31 per share, compared to $2.66 per share in the year-ago quarter.

On average, 15 analysts polled expected the company to report earnings of $2.25 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter declined 3 percent to $2.14 billion from $2.21 billion in the same quarter last year. Net sales, excluding divestitures and foreign currency exchange, decreased 1 percent. Analysts expected net sales of $2.19 billion for the quarter.

U.S. Retail Coffee net sales grew 11 percent to $738.6 million and International and Away From Home net sales improved 3 percent to $308.9 million from last year.

Meanwhile, U.S. Retail Frozen Handheld and Spreads net sales edged down to $449.8 million, U.S. Retail Pet Foods nets sales declined 13 percent to $395.5 million and Sweet Baked Snacks net sales decreased 26 percent to $251.0 million from last year.

Gross profit decreased from last year, primarily reflecting higher costs, unfavorable volume/mix, and the noncomparable impact of divestitures, partially offset by higher net price realization.

Looking ahead to fiscal 2026, the company now projects adjusted earnings in a range of $8.50 to $9.50 per share on a net sales growth of 2 to 4 percent, with comparable net sales growth of approximately 3.5 to 5.5 percent.

The Street is looking for earnings of $10.27 per share on net sales growth of 1.86 percent to $8.93 billion for the year. The company said it continues to operate in a dynamic and evolving external environment, including tariffs and related trade impacts, regulatory and policy changes, ongoing input inflation, and changes in consumer behaviors that impact its fiscal year 2026 outlook.

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