J. M. Smucker Cuts FY17 Outlook

(RTTNews) - J. M. Smucker Company (SJM) updated its full-year fiscal 2017 net sales, earnings, and free cash flow outlook.

Net sales for fiscal year 2017 are expected to decrease approximately 5 percent from fiscal 2016, including a 2 percent impact of the U.S. canned milk divestiture. Excluding the impact of the divestiture, net sales are expected to decrease 3 percent. The change from previous guidance reflects reduced U.S. Retail Coffee segment net sales results in the third quarter and forecasted sales in the fourth quarter.

Comparable net sales for fiscal year 2017 is expected to be down 3 percent. Previously, Comparable net sales for the full year were expected to be flat to down 1 percent.

Adjusted earnings per share for fiscal year 2017 is now expected to range from $7.60 to $7.70, compared to the prior outlook of $7.60 - $7.75 per share. The Company reduced its effective tax rate guidance by 50 basis points to 32.5 percent. Included in the updated earnings guidance is $120 million of incremental synergies in fiscal 2017 compared to previous guidance of $100 million of incremental synergies. 

Analysts polled by Thomson Reuters expect the company to report earnings of $7.70 per share and revenues of $7.48 billion for fiscal year 2017. Analysts' estimates typically exclude special items.