J.M. Smucker stock jumps toward 6-year high after profit and sales beat expectations and outlook raised

Shares of J.M. Smucker Co.
SJM,
+1.11%
jumped 3.7% toward a six-year high in premarket trading Monday, after the consumer and pet foods company, which brands including Folgers, Jif and Milk-Bone, reported fiscal second-quarter profit and sales that beat expectations and raised its full-year outlook, as a 17 percentage point in price realization helped offset a 6-point decline in volume and mix. Net income for the quarter to Oct. 31 fell to $191.1 million, or $1.79 a share, from $206.0 million, or $1.90 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.40 beat the FactSet consensus of $2.18. Sales grew 7.6% to $2.21 billion, above the FactSet consensus of $2.17 billion. Cost of products sold rose more than sales, up 12.4% to $1.50 billion, as gross margin contracted to 31.8% from 34.7%. For fiscal 2023, the company raised its guidance ranges for adjusted EPS to $8.35 to $8.75 from $8.20 to $8.60 and for sales growth to 5.5% to 6.5% from 4% to 5%. The stock has gained 4.6% over the past three months through Friday, while the S&P 500
SPX,
+0.48%
has lost 6.2%.