JM Smucker Stock Rises As Hostess Acquisition Drives Earnings Beat: Retail Turns ‘Extremely Bullish’

Shares of J.M. Smucker Co. ($SJM) rose more than 5% in pre-market trading on Tuesday after the company reported stronger-than-expected quarterly earnings.

For second-quarter (Q2), The company reported a net loss of $24.5 million versus a net profit of $194.9 million a year earlier. 

However, Smucker posted adjusted earnings per share (EPS) of $2.76, exceeding analysts’ expectations of $2.51, while revenue rose by 17% to $2.3 billion, above the forecast of $2.26 billion. 

The company credited its acquisition of Hostess Brands for driving a 17% increase in revenue. 

CEO Mark Smucker commented, “Our strong Q2 performance demonstrates the strength of our categories and continued execution toward our key growth platforms,” adding that the company remains focused on integrating Hostess Brands into its portfolio and growing the brand. 

Smucker also highlighted the recent divestiture of the Voortman business, a strategic move to prioritize its largest growth opportunities.

The company acquired Hostess, the maker of Twinkies, for $5.6 billion in 2023, a deal that continues to support its growth objectives. It has contributed approximately $316 million in sales so far in fiscal 2025.

For FY25, Smucker raised its adjusted EPS outlook to $9.70-$10.10, from $9.60-$10.00, slightly below consensus estimates of $9.78. 

Revenue growth for FY25 is still expected to be between 8.5% and 9.5%, compared to FY24 revenue of $8.18 billion, but below consensus expectations of $8.89 billion.

SJM sentiment and message volume on Nov 26 as of 8:30 am ET | source: Stocktwits

Retail sentiment on Stocktwits surged to ‘extremely bullish’ ahead of market open, with a significant increase in message volume. 

Despite the positive quarterly performance, Smucker’s stock is still down over 12% year-to-date, as the company continues to navigate broader market challenges.

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