The maker of jams, jellies and Jif peanut butter, J.M. Smucker Co., has posted its fiscal fourth-quarter profit registering more than double growth, beating market expectations.
Smucker has primarily been helped by its Folgers coffee business, which has further raised its 2010 profit outlook.
Company’s shares scored an uplift of 12 percent. J.M. Smucker brought in $94.3 million in the quarter ended April 30, up from $37.1 million in the previous year.
The company recorded profit of $1.02 per share (excluding restructuring, acquisition and integration costs), which is much higher than expected, as analysts had estimated rise of 63 cents per-share.
S&P Equity Research uplifted its target price on the stock from $49 to $55.
The Folgers Coffee Co. purchase radically boosted both sales and profit, which made sales to soar 81 percent to $1.07 billion.
According to Smucker report, Folgers grew at more than double the retail coffee category rate in April and gave a pat on its shares’ back.
Richard Smucker, Chairman and Co-Chief Executive of the company, said, "With the addition of Folgers, more than 75 percent of our sales come from number one food brands - brands that consumers know and trust to deliver in any economic environment."
In 2010 earnings of $3.37 per share is being expected by analysts on revenue of $4.7 billion.
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