Shares of JM Smucker (SJM) tumbled 7.91% in pre-market trading on Tuesday following the release of its fiscal year 2025 fourth quarter results and a disappointing outlook for fiscal year 2026. The food and beverage company reported a significant drop in quarterly earnings and provided guidance that fell short of market expectations.

For the fourth quarter, JM Smucker posted a net loss per diluted share of $6.85, compared to a profit in the same period last year. Adjusted earnings per share came in at $2.31, beating analysts' estimates of $2.24 but still marking a 13% decline year-over-year. The company's net sales for the quarter decreased by 3% to $2.14 billion, falling below the consensus estimate of $2.18 billion.

Adding to investor concerns, JM Smucker's outlook for fiscal year 2026 failed to impress. The company forecasts net sales growth of 2-4% and adjusted earnings per share in the range of $8.50 to $9.50. This guidance appears to be below market expectations, contributing to the sharp pre-market decline. The tepid outlook, combined with the weak quarterly results, has led to a significant sell-off as investors reassess the company's growth prospects in a challenging macroeconomic environment.