What happened

Shares of J.M. Smucker (NYSE:SJM) slumped on Tuesday following a mixed fiscal first-quarter report. Adjusted earnings beat analyst expectations, but revenue came up a bit short. The company also reduced its guidance for fiscal 2019. The stock closed down 6.6%.

So what

Smucker reported first-quarter revenue of $1.90 billion, up 9% year over year, but $50 million below the average analyst estimate. Excluding the acquisition of Ainsworth Pet Nutrition, revenue would have declined by about 1% thanks to lower pricing in the pet food, coffee, and oils categories. Non-GAAP (generally accepted accounting principles) earnings per share came in at $1.78, up from $1.51 in the prior-year period and $0.02 better than analysts were expecting.

The entrance to Smucker's store and cafe

Image source: J.M. Smucker.

Smucker now expects to produce $8.0 billion of revenue in fiscal 2019, down from previous guidance of $8.3 billion. Guidance for non-GAAP EPS remained unchanged at $8.40 to $8.65, while the company knocked $30 million off its guidance for free cash flow, which is now expected to be between $770 million and $820 million for the full year.

The revenue guidance cut reflects the company's divestiture of its U.S. baking business as well as lower-than-expected first-quarter sales.

Now what

Like many large packaged-food companies, Smucker is struggling to grow sales organically. The company's well-known brands include Jif, Folgers, Smucker's, Crisco, and many others, but some are dragging down sales. During the first quarter, weak Jif sales contributed to a 1% sales decline and a 12% operating profit decline for the U.S. retail consumer foods segment.

With organic growth in negative territory, investors punished the stock on Tuesday.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.