(Reuters) - J.M. Smucker Co (N:SJM) on Tuesday raised its forecast for fiscal 2021 adjusted profit, after the Jif peanut butter maker topped estimates for first-quarter sales on strong demand for its coffee, frozen sandwiches and fruit spreads.
Shares of the Uncrustables frozen sandwiches maker rose 3% in premarket trade, with a surge in demand for packaged foods as work-from-home policies and the closure of schools have led to consumers keeping the preference they picked up during the lockdown: eating at home to dining out.
Sales in its U.S. retail consumer foods segment climbed 22%, while U.S. retail coffee business rose 23% in the quarter.
Orrville, Ohio-based Smucker forecast fiscal 2021 adjusted earnings to be between $8.20 and $8.60 per share, and net sales to be flat or grow up to 1%.
The Folgers coffee maker had previously projected net sales to decline 1%-2% and adjusted profit per share of $7.90 to $8.30 in fiscal 2021.
Excluding items, Smucker earned $2.37 per share, compared with Wall Street expectations of $1.67 per share, according to IBES data from Refinitiv. Net sales rose to $1.97 billion from $1.78 billion in the first quarter ended July 31. Analysts on average had expected the food processor to post net sales of $1.81 billion, according to IBES data from Refinitiv.