Food processor J.M. Smucker Co. (NYSE: SJM) badly missed expectations this morning as the company suffered from lower demand after it raised prices. For Smucker’s third quarter, the company reported EPS of $1.22 on revenue of $1.47 billion, both quite a ways below consensus estimates for EPS of $1.41 and revenue of $1.54 billion.
Smucker’s results are a sharp contrast to those of Dean Foods Inc. (NYSE: DF) which reported solid earnings yesterday.
Smucker will apparently lower its prices in an effort to win back its customers:
Looking forward, we are encouraged that our share of market remains strong and that commodity costs are moderating, providing opportunities to adjust pricing and promotional activities to better meet the needs of our consumers.
Shares are down more than -7% in the pre-market, at $72.50 in a 52-week range of $63.01-$81.40.
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