UPDATE: J.M. Smucker Q2 Earnings Miss Estimates

The J.M. Smucker Company

reported weaker-than-expected fiscal second-quarter earnings. The Orrville, Ohio-based company posted a quarterly net profit of $158.3 million, or $1.55 per share, versus a year-ago profit of $153.4 million, or $1.46 per share. Excluding non-recurring items, the company's adjusted earnings came in at $1.53 per share. Its sales slipped 5% to $1.48 billion. However, analysts were expecting earnings of $1.55 per share on revenue of $1.52 billion. The U.S. Retail Coffee segment net sales dropped 10%, while sales at the US Retail Consumer Foods segment fell 1%. Net sales in the International, Foodservice, and Natural Foods segment slipped 2% in the quarter. Gross profit slipped $16.1 million in second quarter versus the year-ago period, while operating income rose $4.0 million. "Our second quarter fell short of expectations primarily driven by our coffee business," said Richard Smucker, Chief Executive Officer. "We are confident that this shortfall was a result of short-term challenges and that the fundamentals of our coffee business remain solid.” J.M. Smucker affirmed the forecast for the full year as reported in its November 12, 2014, press release. J.M. Smucker shares rose 0.44% to close at $101.97 yesterday.