Shares of J.M. Smucker (NYSE:SJM) surged as much as 11.6% to $119.01, reaching their highest level in over 10 months, after the company released third-quarter results that topped analyst expectations. Management attributed the beat to stronger net pricing in its coffee business and for Uncrustables sandwiches.
On a top-line basis, Smucker reported third-quarter sales of $2.34 billion, a 7% increase from a year earlier and slightly above the LSEG consensus of $2.32 billion. Adjusted earnings per share came in at $2.38, outpacing estimates of $2.27.
The company offered updated guidance for fiscal 2026, projecting net sales growth of 3.5% to 4.0%. That range narrows the previous forecast of 3.5% to 4.5%, reflecting the company estimate of the impact from a fire at its Emporia, Kansas manufacturing facility in February. Despite the adjustment to the sales-growth outlook, Smucker maintained its annual adjusted earnings-per-share forecast of $8.75 to $9.25.
In a separate corporate development, the company agreed to appoint two executives with financial and food-industry backgrounds as part of a settlement with activist investor Elliott Investment Management. The appointments were disclosed by the company as elements of the agreement with Elliott.
Context and market reaction
The market moved decisively on the quarterly beat and the clarity around guidance. The stock's jump to $119.01 represents a notable positive reaction from investors to both the near-term operating performance and the company's response to an unexpected manufacturing disruption. Management's decision to leave its EPS outlook unchanged while trimming the sales range highlights the specific nature of the headwind attributed to the Emporia fire.
What the numbers show
- Third-quarter net sales: $2.34 billion, up 7% year-over-year and above the $2.32 billion consensus.
- Adjusted EPS: $2.38, compared with estimates of $2.27.
- Fiscal 2026 net sales guidance: 3.5% to 4.0% (previously 3.5% to 4.5%).
- Fiscal 2026 adjusted EPS guidance: maintained at $8.75 to $9.25.
Corporate governance update
As part of the settlement with Elliott Investment Management, two executives with relevant financial and food-industry experience will join the company. The appointments were presented by Smucker as elements of the resolution with the activist investor.
Overall, investors have rewarded the quarter's stronger-than-expected financial performance, even as management flags a discrete operational impact tied to the Emporia facility and implements governance changes under the settlement.