PORTLAND, Ore. (AP) -- J.M. Smucker Co., the maker of Folger's coffee, Jif peanut butter and its namesake spreads, is expected to show a slight uptick in its adjusted profit Thursday, when it reports its fiscal second-quarter results before the market opens.
WHAT TO WATCH FOR: The latest on commodity costs.
J.M. Smucker, like most of its peers, has raised its prices to offset soaring costs for ingredients, packaging and fuel in recent years. Those higher prices, however, hurt the company's sales volume last quarter as shoppers shied away from higher prices on coffee, peanut butter and other products.
It's a struggle for many companies to find the right balance between covering costs and driving revenue growth.
The company is likely to update investors on its $350 million purchase of a chunk of Sara Lee Corp.'s North American coffee and tea foodservice operations. The two companies announced the deal in October along with a long-term partnership to work on new liquid coffee drinks.
WHY IT MATTERS: J.M. Smucker is a major food manufacturer, selling many products that are staples in U.S. pantries. The company's results can indicate trends in the industry and provide insight into how consumers are spending on food.
WHAT'S EXPECTED: Analysts polled by FactSet expect J.M. Smucker to report adjusted earnings of $1.39 on revenue of $1.5 billion.
LAST YEAR'S QUARTER: Last year, the company earned $149.7 million, or $1.25 per share, for the second quarter. Adjusted earnings, which exclude restructuring and merger and integration costs, were $1.38 per share. J.M. Smucker reported revenue of $1.28 billion.
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