J.M. Smucker Co.'s shares fell June 7 after the packaged foods and meats producer announced disappointing earnings.
Net income per diluted share came in at $1.64
Adjusted diluted EPS came in at $1.93 from $1.80 a year earlier. The S&P Capital IQ consensus estimate was $2.18 in normalized terms.
CEO Mark Smucker attributed the lower-than-projected earnings to "industry-wide headwinds and certain discrete items," sending shares down 6.11% to $100.05 as of 2:21 p.m. ET.
Smucker noted that both fiscal fourth-quarter measures included a 10-cent-per-share impact related to pet food recalls and financing costs due to the acquisition of Ainsworth Pet Nutrition LLC.
Net income rose 68% year over year to $185.9 million in the three months ended April 30 from $110.4 million in the same period a year prior.
Net sales declined marginally to $1.78 billion as sales at the company's pet and consumer foods units declined.
For full fiscal 2018, net income surged to $1.34 billion from $592.3 million in fiscal 2017, while net sales fell to $7.36 billion from $7.39 billion.
Full-year diluted EPS increased to $11.78 from $5.10. On an adjusted basis, diluted EPS rose to $7.96 from $7.72.
For full fiscal 2019, J.M. Smucker projects net sales to reach $8.3 billion.
Adjusted EPS for the fiscal year is expected to range from $8.40 to $8.65, reflecting projected contributions from the Ainsworth acquisition, lower taxes and cost-cutting.
