J.M. Smucker Co (SJM.N) on Tuesday raised its full-year targets after beating Wall Street estimates for first-quarter earnings and revenue on strong demand for its coffee, frozen sandwiches and peanut butter from stuck-at-home consumers.
Shares rose as much as 9% as the Jif peanut butter maker posted a 23% jump in sales at its U.S. retail coffee business.
“It has been a long time since Smucker did anything but lower its revenue outlook after reporting fiscal Q1; so, today’s raise is rare,” J.P. Morgan analyst Ken Goldman wrote in a note.
Demand for packaged foods and coffee has remained strong, with extended work-from-home policies and the closure of schools as the COVID-19 pandemic prompted people to stick to eating at home rather than dining out.