J.M. Smucker beats by $0.02, misses on revs; reaffirms FY19 EPS guidance, lowers FY19 revs outlook following agreement to divest its U.S. baking business
- Reports Q1 (Jul) earnings of $1.78 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $1.76; revenues rose 9.0% year/year to $1.91 bln vs the $1.95 bln S&P Capital IQ Consensus.
- On a non-GAAP basis, adjusted gross profit increased $50.0 million, or 8 percent, with the primary difference from GAAP results being the exclusion of the $34.6 million unfavorable change in unallocated derivative gains and losses. After factoring in the increase in SD&A expenses, adjusted operating income increased $15.2 million, or 5 percent.
- Co issues guidance for FY19, sees EPS of $8.40-8.65, excluding non-recurring items, vs. $8.39 S&P Capital IQ Consensus; sees FY19 revs of $8 bln (Prior $8.3 bln) vs. $8.08 bln S&P Capital IQ Consensus.
- On July 9, 2018, the Company announced the signing of a definitive agreement to divest its U.S. baking business. Full-year projections for this business were included in the Company's previous fiscal 2019 guidance. The Company has now updated its full-year outlook to reflect the anticipated impact of the divestiture, based on an expected transaction close date of August 31, 2018. In addition, the net sales guidance also reflects lower than anticipated net sales in the first quarter.