Adds details throughout, CEO comment in paragraph 5

June 9 (Reuters) - Packaged food maker J.M. Smucker forecast annual profit above Wall Street expectations on Tuesday, banking on easing coffee costs and resilient demand for its Uncrustables sandwiches and Hostess donuts, sending shares up 12% in morning trading.

The company has benefited from budget-conscious consumers choosing to eat out less and opting for more ready-to-eat staples and coffee at home, as well as strong demand in its pet category.

It forecast fiscal 2027 adjusted earnings between $9.75 and $10.25 per share, the midpoint of which is higher than analysts' average estimate of $9.79 per share, according to data compiled by LSEG.

Coffee prices are starting to ease after surging in recent years due to higher green coffee costs and tariffs, prompting the Folgers maker to cut prices and sacrifice revenue growth to rebuild margins.

"Green coffee deflation is expected to be a headwind to net sales, but a tailwind to margins," CEO Mark Smucker said.

The company expects adjusted gross margin to expand roughly 300 basis points to about 38% for the full year, supported by lower commodity costs, reduced tariff pressure and cost-saving initiatives.

The upbeat outlook came after better-than-expected fourth-quarter results, with adjusted profit of $2.77 per share beating estimates of $2.64, while net sales rose about 6% to $2.27 billion, slightly above expectations.

Smucker flagged price-sensitivity among shoppers and a "dynamic and evolving" external environment, including geopolitical tensions, that would keep volumes in check.

It expects fiscal 2027 net sales to fall 3% to 4%, compared with analysts' expectations for a nearly 1% growth.

The company noted that roughly two-thirds of its portfolio is either gaining or maintaining dollar share, even as consumers shift toward private-label offerings and healthier products, trends partly driven by the rising use of GLP-1 weight-loss drugs.