Markets

Smucker shares plummet on weak earnings, concern about tariffs

Key Points
  • J.M. Smucker shares dropped as much as 9 percent on Thursday.
  • The packaged food company released disappointing quarterly earnings as well as a weak full-year profit forecast.
  • The report comes as Canada announced retaliatory tariffs on U.S. goods that Smucker sells.
Smuckers fruit products are displayed on a shelf at a grocery store.
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J.M. Smucker shares fell to levels not seen since October 2014 on Thursday after posting weaker-than-expected quarterly earnings and issuing full-year profit guidance that was well below estimates.

The stock plummeted as much as 9 percent as the packaged-food company claimed "industry-wide headwinds" affected their earnings. Smucker shares were down 4.6 percent as of 11:09 a.m. ET and are down about 20 percent this year.

The company said it earned $1.93 per share in its fiscal fourth quarter — below Street estimates of $2.18 per share. Sales of consumer foods, such as Crisco and Pillsbury, fell 2 percent in the quarter. Smucker has been dealing with issues related to price hikes for Jif peanut butter and Crisco cooking oil as well as higher freight costs.

Smucker also said it expects full-year earnings per share to range between $8.40 and $8.65, falling short of a Reuters average estimate of $9.22.

The name-brand company has been under pressure recently as Canada announced potential retaliatory tariffs on jam and other products, one of the company's most well-known products. Trade tensions between the U.S. and one of its partners under the North American Free Trade Agreement continue to escalate as President Donald Trump joins other members of the G-7 in Canada to discuss global economic goals this week.