Smucker stock gets jammed on sales miss

Shares of J.M. Smucker fell more than 8%Tuesday after the company reported quarterly sales that missed Wall Street estimates.

J.M. Smucker, the parent company behind the Smucker's line of peanut butter, jellies and ice cream toppings as well as brands such as Folger's Coffee and Pillsbury, reported revenue of $1.82 billion in the quarter, short of Wall Street's expectation of $1.89 billion according to analysts polled by S&P Global Capital Intelligence.

Smucker had year-over-year net sales declines across a number of its larger segments, including a 9% drop in retail coffee due to a decline for Dunkin' Donuts K-Cup pods and an 8% drop in consumer foods, where prices for its Crisco, Pillsbury and Jif brands fell.

Net income for the quarter was $170 million below analysts estimates of net income of  $179.15 million. On a per-share basis the company reported adjusted earnings of $1.86, beating Wall Street expectations of $1.73.

The company said the divestment of its canned milk business and price deflation was to blame for the sales miss, though CEO Mark Smucker said in a statement that the company still expects to reach its "original expectations for full-year earnings per share."

For the year the company expects earnings in the range of $7.60 to $7.75 per share.

Sales in the company's pet food line also fell for the quarter, dropping 6% year-over-year. The company bought Big Heart Pet Brands, makers of Meow Mix cat food and Milk-Bone dog treats, for $3.2 billion last year.

Smucker shares slid $12.81 to $143.42 in midday trading.

Follow Eli Blumenthal on Twitter @eliblumenthal