Overview

• U.S. food and pet products maker's fiscal Q4 net sales rose 6%, slightly beating analyst expectations

• Adjusted EPS for fiscal Q4 increased 20% and beat analyst expectations

• Company cites higher net pricing, mainly in coffee and sweet baked goods, as key driver

Outlook

• J.M. Smucker expects FY27 net sales to decrease 3.0-4.0% versus prior yr

• Company sees FY27 adjusted EPS between $9.75 and $10.25

• J.M. Smucker expects FY27 free cash flow of about $1.0 bln

Result Drivers

• HIGHER NET PRICING - Q4 sales growth was primarily driven by higher net pricing, especially in coffee and sweet baked goods

• US RETAIL COFFEE - Lower marketing spend and cost controls contributed to segment profit growth

Company press release: ID:nPn6njsGJa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Slight Beat*	$2.27 bln	$2.26 bln (16 Analysts)
Q4 Adjusted EPS	Beat	$2.77	$2.64 (17 Analysts)
Q4 EPS		$3.64
Q4 Net Income		$388.1 mln
Q4 Adjusted Operating Income	Beat	$482.10 mln	$454.02 mln (12 Analysts)
Q4 Operating Income		$444.50 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for J.M. Smucker Co is $117.00, about 15% above its June 8 closing price of $101.77

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

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