Ask Matt: Is J.M. Smucker back?

Q: Is J.M. Smucker back?

A: The giant Ohio-based food company — best known for its jelly — seems to be working its way out of a jam. But that’s priced into the stock.

Growth is re-accelerating at the company — made very clear from its most recent quarterly results. Smucker posted an adjusted quarterly profit of $1.86, which topped expectations by 56%, says S&P Global Market Intelligence. While beating expectations makes traders happy, investors were pleased to see the company boosting growth. Adjusted quarterly profit was up nearly 90% from the same period a year ago. That is well above the 20% profit growth in the previous quarter and falling profit in the first quarter of 2015. Revenue grew 25% during the quarter, an impressive clip for a food company.

Jumping into the pet food business, with its purchase of Big Heart Pet Brands, is boosting growth. The company also posted 9% growth in its U.S. coffee unit, a bright spot for what had been a difficult business. Investors applauded the quarterly results, pushing the stock up $10.52, or 7.9%, to $143.23 on Thursday. Analysts are hopeful about profit, calling for a 22% rise this year. The trouble is Smucker’s stock price is already trading higher than the $133.46 a share analysts think it will be worth in 18 months.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz