Coffee Sales A Surprise For J.M. Smucker Company

The J.M. Smucker Company (NYSE: SJM) FY1Q11 EPS of $1.04, above the $0.99 estimate from Goldman Sachs and the consensus $0.96. Margin performance was the driver for higher operating profit and lower tax rates, according to Goldman.

Goldman reports that management has raised its sales guidance from +3% to a "slightly ahead of +3%" average, based on recent coffee prices and mainstay EPS estimates for FY2011 of $4.50-$4.60.

Goldman has lowered the price target to $69 (from $70) and remains Neutral.

The J.M. Smucker Company closed yesterday at $59.65.