J.M. Smucker Co. (NYSE: SJM) reported Wednesday that its third-quarter profit nearly doubled, citing a boost from its Folgers coffee business, according to Associated Press.
The company’s profit rose 74 percent to $135.5 million, or $1.14 per share, for the quarter, compared to $77.9 million, or 68 cents per share, earned in the same quarter of the prior year. Removing acquisition costs and other items, the company earned $1.17 per share.
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The results beat analyst expectations for the company of $1.05 per share on revenue of $1.16 billion, according to Thomson Reuters. Analyst expectations typically exclude one-time items.
The company's revenue grew 3 percent for the quarter to $1.21 billion. Folgers accounted for $510.3 million of those sales.
J.M. Smucker executives said the coffee business, which includes Folgers and Dunkin' Donuts brands, has exceeded its expectations as it has reached a full year of operation within the company.
Excluding the additional coffee sales and the impact of foreign exchange, sales decreased 2 percent for the quarter.
Smucker received a boost due to its diverse lineup of brands, such as Jif peanut butter, Pillsbury frosting and its namesake jellies and jams. However, its $3 billion acquisition of Folgers Coffee from Procter & Gamble Co. (NYSE: PG) more than a year ago was its biggest driver.
Smucker lifted its earnings and revenue guidance for the year on the strong results. The company now expects an adjusted profit of $4.02 to $4.07 per share for the year, up from its prior guidance of $3.95 to $4.05 per share. The food company also lifted its sales forecast to a range of $4.5 billion to $4.6 billion, up from its previous forecast of $4.5 billion.
However, analyst expectations for profit remain higher at $4.09 per share on sales of $4.57 billion, which was below Wall Street's profit expectations.
Shares of Smucker fell $1.49, over 2 percent, to $58.62 in early afternoon trading.
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