Rueters reports that J.M. Smucker Co (SJM.N) posted higher-than-expected quarterly earnings as its Folgers coffee business continued to drive improved results, and the company signed a deal to sell coffee packs for Green Mountain Coffee Roasters Inc’s (GMCR.O) brewers.
Smucker, best known for its peanut butter and jelly, posted third-quarter net income of $135.5 million, or $1.14 a share, compared with $77.9 million, or 68 cents a share, a year ago.
Excluding items, the company earned $1.17 a share, beating analysts’ average estimate of $1.05 a share, according to Thomson Reuters I/B/E/S.
For the third quarter ended January 31, net sales rose 2 percent to $1.21 billion, beating analyst estimates of $1.16 billion.
Folgers, the largest producer of retail packaged coffee in the United States, contributed $510.3 million to net sales in the third quarter, compared with $468.5 million in the year-ago period.
Orrville, Ohio-based Smucker raised its full-year earnings outlook to $4.02 to $4.07 a share, excluding merger and acquisition costs, from its previous range of $3.95 and $4.05 a share.
Under the deal with Green Mountain, Smucker will market and sell Folgers and Millstone “K-Cups,” — coffee portion packs — for Green Mountain’s single-cup Keurig brewers.
While, Green Mountain will be the exclusive manufacturer of Smucker coffee brands of K-Cups.
Smucker’s shares closed at $60.11 Tuesday on the New York Stock Exchange.