Shares of J.M. Smucker (SJM 1.72%) rose on Tuesday after the jam and jelly purveyor's profits topped Wall Street's forecast.
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Price hikes drove Smucker's earnings higher
Smucker's net sales grew 6% year over year to $2.3 billion in its fiscal 2026 fourth quarter, which ended on April 30.
Price increases helped offset volume declines in Smucker's spreads and coffee segments, boosting the company's profit margins.
NYSE: SJM
Key Data Points
Smucker's adjusted operating income jumped 14% to $59.7 million, as its margin improved to 21.3% from 19.7% in the prior-year quarter.
In turn, the maker of Jif peanut butter and Folgers coffee saw its adjusted earnings per share surge 20% to $2.77. That bested Wall Street's estimates, which had called for per-share profits of $2.64.
Better still, Smucker's cash generation continued to strengthen. Its free cash flow soared 42% to $1.2 billion in fiscal 2026. That enabled the company to pay $465 in dividends while also paying down $720 million in debt.
A sizable dividend yield for shareowners
Smucker's sees its full-year adjusted earnings per share rising by 7% to 12% to between $9.75 and $10.25 in fiscal 2027.
"Looking ahead, our strategic priorities for the fiscal year are to drive focused organic volume growth across our key platforms, improve profitability and accelerate earnings growth, and maintain a disciplined approach to capital deployment," CEO Mark Smucker said.
Investors can count on that capital deployment to include sizable cash payments to shareholders. Even after today's gains, Smucker's stock yields a solid 3.9%.
