J.M. Smucker Stock Rises as It Gets a Lift From Hostess Brands Acquisition

Shares of The J.M. Smucker Co. (SJM) advanced Thursday after the food producer beat profit estimates as it cut costs, raised prices, and benefited from its purchase of Hostess Brands.

The company behind the eponymous jelly, Jif peanut butter, and Folgers coffee posted fourth-quarter fiscal 2024 adjusted earnings per share (EPS) of $2.66, above the $2.32 consensus of analysts compiled by Visible Alpha. Revenue fell 1.3% to $2.21 billion, missing forecasts.

Smucker noted gross profit jumped 15.3% to $913.3 million, which it attributed primarily to “a favorable impact from the acquisition of Hostess Brands, lower costs, higher net price realization, and favorable volume/mix.”

Smucker CEO Says Results Driven by ‘Disciplined Cost Management’

Chief Executive Officer (CEO) Mark Smucker explained that the results were driven by “superior execution and disciplined cost management.” He said that Smucker’s transformed portfolio, including the addition of Hostess Brands, “has strengthened our business for long-term profitable growth across our key platforms of coffee, Uncrustables frozen sandwiches, dog snacks and cat food, and sweet baked snacks.”

Sweet baked snacks, a specialty of Hostess Brands, made up more than 15% of Smucker’s revenue in the quarter. Smucker completed its $5.6 billion purchase of Hostess Brands last November.

The company sees fiscal 2025 adjusted EPS of $9.80 to $10.20, with revenue up 9.5% to 10.5%. In 2024 the figures were $9.94 and a decrease of 4.1%, respectively.

Smucker shares surged 6% to $116.92 as of 10:37 a.m. ET Thursday but still are nearly 8% lower for 2024.