CNBC's Jim Cramer said Tuesday he doesn't want to bet against J.M. Smucker CEO Mark Smucker after the company posted quarterly revenue that fell short of analysts estimates.
The company reported fiscal first-quarter earnings of $1.86 per share on $1.82 billion in revenue. Analysts had expected the company to report earnings of about $1.74 a share on $18.9 billion in revenue, according to a consensus estimate from Thomson Reuters.
The drop in revenue occurred as the company's Kibbles 'n Bits and Meow Mix brands were hurt amid intensifying competition. J.M. Smucker's shares dropped more than 8 percent Tuesday following the report.
"It was the pet food division ... which had been so strong," Cramer said on "Squawk on the Street." "There's a mix issue that brought their margins down."
Reuters reported the two dominant pet-food players, Nestle Purina and Mars Petcare, are competing for a bigger share in the market by using promotions and discounts. J.M. Smucker joined the pet food market last year with its acquisition of Big Heart Pet Brands.
"Despite the impact of deflation on the top line, we remain on track to achieve our original expectations for full-year earnings per share," Smucker said in a press release. "We are strengthening a great portfolio of brands by investing in new capabilities and on-trend platforms that are essential to long-term sales growth."
The company maintained is full-year fiscal 2017 earnings outlook of $7.60 to $7.75.
Smucker's stock ended the day 8 percent lower at $143.63. The stock has risen this year, up more than 16 percent.
SJM 2016 Chart
— Reuters contributed to this report.